Mortgage Exit Fee - Refuse Payment ?

holgates

I challenged my mortgage lender to justify repayment/exit fee of £95.They said they had to charge it as Land Registry invoices an administrative fee for removing the charge on a property.(this was the only reason they gave for charging the £95).I contacted LR and they said there is NO FEE for removing mortgage lender's charge on a property on completion of mortgage.

Advice/opinion,please on whether I could refuse to pay the £95 ?
Would ask Martin Lewis (as this may affect others) .......... but it appears there is no way of contacting him ..... which is a pity.

holgates

Think you have missed the point,maybe.I understand about the argument re changing the amount.I am saying that their total justification is spurious.Maybe before the LR was rearranged there was a fee.Now there is no fee ....... so should be no fee from lender ?

holgates

Am saying they claim the justification for charging me is a charge from LR ...... I have an email from LR saying there is no charge.They are not saying there is a charge for anything else ...... what profit am I taking away ? Mortgage going full term/completion.

holgates

Yes.
Have you read/followed the points I am making ?

MarkyMarkD

It doesn't matter what spurious explanation they may give for the fee. If the fee was in your original mortgage offer, or contract, or fees leaflet at the time your loan started, then you are liable to pay it. End of story.

holgates

Wow ! wasn't really looking for a fight !
Information not on phone .... in writing.
As Lord Denning used to point out ............. contracts are not necessarily binding if unfair.
I am just suggesting that circumstances may have changed ........... and if fee no longer chargeable to lender .... should maybe not be passed on to borrower.


Incidentally lender used to call it "deeds release" ............ also can't do that now as already posted them to me unsolicited.

holgates

Not sure you grasped the point .... but thank you to two respondents for your comments ....

MarkyMarkD

The FSA have done a huge investigation into this and have declared that they won't take any action at all against lenders charging the originally agreed amount. Whilst Land Registry costs have fallen, in some cases, other costs (such as staff costs) have increased over time.

Neither the FSA, nor the Financial Ombudsman Service, would support a claim of the type you are making. Nor would the courts likely over-turn the FSA's ruling.

And all this for £95? Some lenders legitimately charge their borrowers £295.

holgates

Somehow I'm not explaining successfully that LR say in writing there are NO FEES for releasing the charge ........ lender says in writing that £95 is payable to cover the cost of getting the charge released ............ doesn't seem sensible/fair/reasonable to me
You seem to be in sympathy with mortgage lenders ......... my impression is that is not the general tenor of this site ! Anyway - let's leave it there and thank you

MarkyMarkD

But the fee IS NOT just a recharge of the LR's fee. It's a total fee agreed between you and the lender for the redemption of your mortgage. That's why you have to pay it, and why the LR's fee reduction is a red herring which some call centre muppet has (apparently) referred to in their conversation with you.

I think you'd find, if you visited this site regularly, that the general tenor of this site is that people should stick to the agreements they sign up to. The chief exception to that is the bank charge reclaims forum where I do not post.

holgates

Once again - not a conversation but in writing

Also,as I have tried to explain - nothing wrong with sticking to original agreements in principle ..... BUT when circumstances maybe changed - change in fee structure and automatic return of deeds ......... maybe argue/justify these lender charges are not reasonable

Glad you don't work for lender .... do you !?

Happy New Year and Good Nite