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  • FIRST POST
    • MSE Martin
    • By MSE Martin 6th Mar 07, 11:39 AM
    • 8,116Posts
    • 42,310Thanks
    MSE Martin
    NEW Mortgage Exit Fees Discussion
    • #1
    • 6th Mar 07, 11:39 AM
    NEW Mortgage Exit Fees Discussion 6th Mar 07 at 11:39 AM
    This discussion relates to Martin's updated

    Mortgage Fees Article
    (see old discussion thread here)

    To discuss or ask a question about the article: click reply

    To report your experiences go to the Mortgage Exit Fees successes and failures thread


    Extra Note - We have had lots of comments about what is and isn't included as a MEAF. The article has been updated to include the following text:

    What a MEAF isn't.... don't get it confused

    This is a strict ruling and only applies to exit fees. Application fees and others that are paid when originally getting the mortgage aren't included.

    Also while MEAFs sound similar to ‘early repayment fees', commonly known as 'redemption penalties' again they're not the same thing. Early repayment fees are charged if you repay or switch mortgage during a special deal, such as a fixed or discount rate (see the Mortgage Guide / Remortgage Guide for details) whereas exit fees apply at all times.

    For full details, see the Mortgage Fees Reclaiming article.
    Last edited by Former MSE Wendy; 07-03-2007 at 8:18 AM.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

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Page 2
    • Mish Mash
    • By Mish Mash 7th Mar 07, 6:54 PM
    • 56 Posts
    • 18 Thanks
    Mish Mash
    Fees Refunded
    Hi

    Just wanted to say thanks for all the advice. Have phoned Woolwich and they have agreed to refund me £100 plus £11.68 interest. No argument, no hassle, I was really surprised (and happy).

    Thanks.
  • itsnotfair
    exit fees
    My daughter got married in July, new hubby had house and mortgage guaranteed by his dad. They thought they could take dad off add daughter to deeds and mort etc but no Cheltenham and Gloucester said they had to start al over exit fees, solicitors fees, valuation fees, new mortage fees etc. they have had to pay out hundreds. Is this all correct. The payments were up to date, they only got married.
    • MarkyMarkD
    • By MarkyMarkD 7th Mar 07, 7:32 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    Borolee – your case would be harder but you could try the militant approach mentioned in the mortgage exit fees article. Alternatively, lenders may reduce their fees in the next few months and you could ask to be charged this reduced fee, if and when the BIM decide to do this.
    by MSE Wendy
    Even if a lender decides to charge a lower fee in future (and there is little evidence that there's any likelihood of this - why would they, when the FSA has explicitly said they can charge anything they like as long as it was disclosed up front - the reduced fee wouldn't apply to people whose fees were stated as a HIGHER amount up front.

    The fee is part of the offer and attaches to that mortgage product. The fact that an earlier or later product had a different exit fee is irrelevant.
    • DaveO
    • By DaveO 7th Mar 07, 7:35 PM
    • 55 Posts
    • 34 Thanks
    DaveO
    About to re-mortgage
    Hi,

    We are about to re-mortgage away from Yorkshire Building Society and the current redemption fee is £199 whereas when we first became a customer of theirs in 2000 it was £55.

    I have two questions.

    1. We have had two mortgage products with YBS. The original mortgage for four years and then we transferred to a new one which we are now switching from to another lender. As YBS have steadily increased the fee over the years am I entitled to ask for the difference between £55 and £199 back or the difference between whatever their fee was two years ago and £199?

    2. As we are in the process of re-mortgaging our new lenders solicitors will be asking for a redemption statement which will of course include the redemption fee. Is there any way to get YBS to include the lower redemption fee in the redemption statement or must I wait to be charged the £199 fee and claim it back later?

    Thanks,

    Dave
    • MarkyMarkD
    • By MarkyMarkD 7th Mar 07, 7:36 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    My daughter got married in July, new hubby had house and mortgage guaranteed by his dad. They thought they could take dad off add daughter to deeds and mort etc but no Cheltenham and Gloucester said they had to start al over exit fees, solicitors fees, valuation fees, new mortage fees etc. they have had to pay out hundreds. Is this all correct. The payments were up to date, they only got married.
    by itsnotfair
    It sounds like C&G are being OTT.

    In most lenders' eyes, this would be treated as a transfer of equity. It would require the borrowers to pay some sort of fee (maybe £250 or so); it would require the involvement of solicitors which the borrowers would have to pay.

    It wouldn't involve the payment of mortgage product fees or mortgage exit fees, unless at the same time as the transfer of equity the borrowers were CHOOSING to switch products.

    I'm not sure that you clearly understand:

    (a) what she's been charged for; or
    (b) what the previous situation was.

    If the mortgage was merely GUARANTEED by his father, as you've stated, the removal of the guarantee wouldn't be as big a deal as the removal of him from the property's title deeds and the mortgage. I wonder whether actually the property was jointly owned by him and his father, with a joint mortgage?
  • Actybod
    Remortgaging with the same provider
    Hi

    I have remortgaged with the same provider 3 times and the fees have gone from £95 to £195 to £395. I cannot see how they can justify the increase.

    Can I ask for the charges back on the basis that I think I have been treated unfairly?

    Thanks
  • justocker
    Intelligent Finance
    Hi,

    I remember seeing an exit fee on my final paperwork from IF when I remortgaged last year and thinking it was suspect. However I cannot locate the paperwork in question. I think the amount was about £165 - can anyone help who might know the exact amount?

    Many thanks

    Julian
    • MarkyMarkD
    • By MarkyMarkD 7th Mar 07, 7:45 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    Hi,

    We are about to re-mortgage away from Yorkshire Building Society and the current redemption fee is £199 whereas when we first became a customer of theirs in 2000 it was £55.

    I have two questions.

    1. We have had two mortgage products with YBS. The original mortgage for four years and then we transferred to a new one which we are now switching from to another lender. As YBS have steadily increased the fee over the years am I entitled to ask for the difference between £55 and £199 back or the difference between whatever their fee was two years ago and £199?

    2. As we are in the process of re-mortgaging our new lenders solicitors will be asking for a redemption statement which will of course include the redemption fee. Is there any way to get YBS to include the lower redemption fee in the redemption statement or must I wait to be charged the £199 fee and claim it back later?

    Thanks,

    Dave
    by DaveO
    1. As Martin's article says, it's the fee when you last switched product or took a further advance that counts. So it's 2 years ago (£199) vs now (£199) i.e. nothing due. The fee increased to £199 on 1 March 2005 - if you switched before 1 March in 2005 the original amount due would be £150 so you'd qualify for £49.

    2. It depends whether they've updated their redemption quotation systems - probably not. In which case, your redemption will go a lot more smoothly if you simply pay the amount requested and then seek a refund afterwards.
  • itsnotfair
    (I'm not sure that you clearly understand:

    (a) what she's been charged for; or
    (b) what the previous situation was.

    If the mortgage was merely GUARANTEED by his father, as you've stated, the removal of the guarantee wouldn't be as big a deal as the removal of him from the property's title deeds and the mortgage. I wonder whether actually the property was jointly owned by him and his father, with a joint mortgage?
    by itsnotfair
    As I understand it son in law and dad on mortgage, dad as guarantor. The dad died 1 year prior to wedding, son in law just carried on paying as always not knowing he had a problem with mortgage (only 20, knew nothing about finance). After wedding they had to have the original mortgage stopped and start as if applying for new mortgage and everything. My daughter queried it at the time but they said they payments were compulsory.[/QUOTE]
  • Pipkins
    Northen Rock
    I have just been through the complete details relating to a Northern Rock mortgage that I took out in March 98.

    I have the agreement and a booklet with Ts & Cs. The only mention of any charge is on the back of the agreement but does not specifiy what it would be. 'Full details available on request'

    I was charged £195 'disbursement' when I paid off the mortgate six years later.

    If I call them they can just say that the charge in 1998 was £195.

    As the charge was never stated where do I stand?

    Thanks,

    Terry
  • Bekkie1980
    Second Charges Count?
    Hi...firstly WAHOOOOOOOO! Thanks to this site £150 refunded by RBS in the next 5 days with one phonecall....so THANKS! So now I have another question...Second charge mortgages! Does this count? We have literally just moved house and took out a completely new mortgage to pay off both previous mortgages (main and second charge) with a lot of fees in the process....RBS sorted out now but GE Money was the second charge with similar higher fees...is it possible to get this back too?

    Any ideas greatly appreciated....and good luck to the rest of you:-)

    Bekkie
    Last edited by Bekkie1980; 07-03-2007 at 10:11 PM.
  • mariner
    Just about to change mortgage, should we pay the exit fee?
    We want to switch our mortgage from Abbey and they want to levy a £225 exit fee, I gather that this is illegal, so do we pay it and reclaim, or argue about it before?
    • sillygoose
    • By sillygoose 7th Mar 07, 11:20 PM
    • 4,547 Posts
    • 7,266 Thanks
    sillygoose
    We want to switch our mortgage from Abbey and they want to levy a £225 exit fee, I gather that this is illegal, so do we pay it and reclaim, or argue about it before?
    by mariner
    I am looking for the same answer, I am planning to start the switch to another lender soon. I have the original documents for my current mortgage from 7 years ago stating quite modest fees, which are now in the silly region of £199 - Do I demand they lower this before the switch or try to claim it back after its all done and dusted?
  • JimLFixit
    Raspberrys!
    1000's may have been paid, but has anyone had any luck with C&G? I wrote my letter to them over two weeks ago - using the template as suggested, with the "please reply within 7 days" and.... nothing.

    What's my next step?
    • Nicky321
    • By Nicky321 8th Mar 07, 7:10 AM
    • 1,423 Posts
    • 610 Thanks
    Nicky321
    I have remortgaged several times, last few with C & G Through LTSB. I now have 4 different account numbers with them and wonder how I can find out what fees I have been charged. I cant find any paperwork.
    • Cookiepops
    • By Cookiepops 8th Mar 07, 8:44 AM
    • 342 Posts
    • 204 Thanks
    Cookiepops
    Does the 6 year rule apply and how many claims?
    I am claiming against Abbey who I had a mortgage with from 2002 - 2005. I have my paperwork which clearly states £99 exit fee and then I was charged £225 so Im pretty confident with this one. I called them up and they are sending me a form to complete.

    Before Abbey, I had a mortgage with Barclays from 1999 - 2002. I don't have any paperwork, don't know my mortgage number or have a clue what I was charged in exit fees.

    Do I have a claim against Barclay and if so, how do I go about it?

    Thanks
    • loopylass30
    • By loopylass30 8th Mar 07, 8:49 AM
    • 921 Posts
    • 959 Thanks
    loopylass30
    Hi every 1,
    I paid off the mortgage with northern rock in 2004, not sure what i was charged but i could probably find out, but then i remortgaged with spml, and kensington mortgages, this 1 isnt listed on the list with the others, so i was wondering if i would still be able 2 reclaim my charges back from them.

    Any help you could give me would be really appreciated.

    Just ringing up spml now as ive found all my details and account info from them, ill keep you posted as to how i get on as ive already been transfered to different ppl about 4 times :|
    Last edited by loopylass30; 08-03-2007 at 9:07 AM.
    £2 coin savers club = £118
    20p saver club = £275.80 yippeeeee
    • musicman100
    • By musicman100 8th Mar 07, 9:47 AM
    • 79 Posts
    • 12 Thanks
    musicman100
    HI,

    Success just phone up Standard Life and said they would send the full amount over to me.

    just one quick question

    Can you claim the deeds handling fee back- or is that different.

    Also any one had experience with Legal and General Bank or IF??

    It would be useful if someone could compile a list of the different banks.

    thank-you.

    Nigel

    Also I keep checking the FSA site but there is no update there. What is their view on whether we should get interest or not??

    Thanks-you
  • baaabbo
    Mortgage Exit Fees and Deeds Handling Fee Refunded to me
    Hi: On 26th February I posted a refund demand to Standard Life Bank for an 16-month old mortgage Discharge Fee (£185) and Deeds Handling Fee (£30). On 6th March, I received a cheque for the total amount (£215) with an admission that those fees were not included in the mortgage offer document in 1999. Thank you Martin!
    • musicman100
    • By musicman100 8th Mar 07, 10:06 AM
    • 79 Posts
    • 12 Thanks
    musicman100
    I have been trying to ring the FSA for the past few days but I never get to speak to a mortgage advisor they just take my number and say they will phone back but they never do!!
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