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MEAF redemption issues @ Kensington Mortgages
jamiecg74
Posts: 8 Forumite
I wrote to Kensington last week regarding a redemption overpayment when we changed our mortgage two years ago and have just had this response from them. I have had a letter back from them, I have typed up half the letter from them:
“Further to the recent statement of good practice made by the FSA, we have now considered our position and would like to take this opportunity to explain to you in relation to the above numbered mortgage.
By accepting your mortgage offer issued on 15/9/2003 you agreed to become bound by all terms and conditions during the term of your mortgage.
The tariff of charges that accompanied your offer clearly detailed the MEAF as a redemption admin fee.
The tariff also made clear that the fees shown we liable to change in the future and that you would be notified of any such changes as and when they occurred.
I confirm that the redemption fee is charged in respect of the additional work that is undertaken on behalf of the customer when the account redeems. The additional work that is involved during the redemption process includes, but is not restricted to the following:
Applying redemption monies to a mortgage account.
Preparing and issuing applicable refunds
Ensuring our charges are removed from the land registry.
Our fees compare favourably to those applied by other lenders in the market with the smallest increases made over the last decade.
In consideration of this and the work undertaken I remain satisfied that our redemption admin fee represents a reasonable estimate of the costs we incur as a result of a mortgage account redeeming. Our fees are also reviewed regularly to ensure that this continues to be the case. The FSA statement explains that the lender in this case Kensington Mortgages should be able to justify and increase in any MEAF. And with this in mind that I would like to explain the reasons why our MEAF increased from £100 to £145. As a business it is vital that we are able to operate as a viable commercial operation. There are instances where increases ion the costs we incur have to be factored into the costs associated with undertaking admin work on behalf of our customers.
It goes on to end……………
I feel it would be beneficial to both parties to treat this letter as our final response.
Have I got a case if I were to take this further, or would I be wasting my time??
Jamie
“Further to the recent statement of good practice made by the FSA, we have now considered our position and would like to take this opportunity to explain to you in relation to the above numbered mortgage.
By accepting your mortgage offer issued on 15/9/2003 you agreed to become bound by all terms and conditions during the term of your mortgage.
The tariff of charges that accompanied your offer clearly detailed the MEAF as a redemption admin fee.
The tariff also made clear that the fees shown we liable to change in the future and that you would be notified of any such changes as and when they occurred.
I confirm that the redemption fee is charged in respect of the additional work that is undertaken on behalf of the customer when the account redeems. The additional work that is involved during the redemption process includes, but is not restricted to the following:
Applying redemption monies to a mortgage account.
Preparing and issuing applicable refunds
Ensuring our charges are removed from the land registry.
Our fees compare favourably to those applied by other lenders in the market with the smallest increases made over the last decade.
In consideration of this and the work undertaken I remain satisfied that our redemption admin fee represents a reasonable estimate of the costs we incur as a result of a mortgage account redeeming. Our fees are also reviewed regularly to ensure that this continues to be the case. The FSA statement explains that the lender in this case Kensington Mortgages should be able to justify and increase in any MEAF. And with this in mind that I would like to explain the reasons why our MEAF increased from £100 to £145. As a business it is vital that we are able to operate as a viable commercial operation. There are instances where increases ion the costs we incur have to be factored into the costs associated with undertaking admin work on behalf of our customers.
It goes on to end……………
I feel it would be beneficial to both parties to treat this letter as our final response.
Have I got a case if I were to take this further, or would I be wasting my time??
Jamie
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