Can I reclaim mortgage redemption fees?

jmp1

Hello,

In September of last year we sold our property in order to clear a mortgage and a secured loan. In both cases the amount of money they wanted in order to clear the balances we thought were a bit excessive, but as we really needed to clear them to get ourselves out of a sticky situation, we didn't query them at the time.

I've read the fact that you can reclaim mortgage redemption fees, but does this also apply to secured loans (as they are known as second mortgages)?

The statement from the solicitor dealing with our sale lists Mortgage Redemption monies for both the primary and secondary companies, how do I know if the fees are too high, is there a calculator that will check this for me?

Is there a time limit of claiming back these fees?

Noz

http://www.moneysavingexpert.com/reclaim/mortgage-fees
http://forums.moneysavingexpert.com/showpost.html?p=5813977&postcount=9

MarkyMarkD

Thanks, Noz. It's good to see that post dusted off - and how well written it was, too.

Noz

You can pay me the fiver later

jmp1

Thank you NOZ, I read the first link, which is what prompted me to ask the question.

I was rechecking our paperwork yesterday and found the the secured loan had, in fact repaid some money to us after we had completed.

I've also read your other thread.

Our mortgage was fixed for 2 years, the redemption was done after 3 years, so I need to check whether the amount was a set price or a percentage in order to determine if it was a MEAF rather than a ERC - is this correct?

Noz

jmp1 wrote: »

Our mortgage was fixed for 2 years, the redemption was done after 3 years, so I need to check whether the amount was a set price or a percentage in order to determine if it was a MEAF rather than a ERC - is this correct?

Not even that complicated. You just need to verify what fee(s) were charged.
If an ERC was charged, then there is no action required on this.
If a MEAF was charged, verify what was actually charged and what was quoted in your mortgage documentation - if you have been charged more than what was quoted, you're entitled to the difference back.
Note: you could have been charged both these fees.

MarkyMarkD

My "fixed amount or percentage" thing is just a general guide as to whether an amount you've been charged is LIKELY to be an MEAF or an ERC.

Round sum amount less than £300 - typically an MEAF.
Funny amount often a lot more than £300 - usually an ERC.

And as Noz says, you might not be able to easily see you've been charged both at the same time which is very likely, without looking at your detailed redemption statement.

jmp1

Checked the redemption statement our MEAF was £295, but I don't have the original paperwork to hand to see if that was what they were going to charge in the first place, so I'll just have to leave it.

Thanks for the advice anyway guys.