NEW Mortgage Exit Fees Discussion

fabfor · 21 October 2015 at 10:23PM

Thanks for the classification, Kingstreet. Much appreciated :-)

fabfor · 21 October 2015 at 10:24PM

Clarification!

Lee987 · 2 December 2015 at 3:27PM

Hi not sure how to use this site exactly this is my first post..this is a long shot but i was wondering whether i could claim back for an admin fee i took out for a mortgage? Basically the sale of the property fell through after i paid the £500 fee upfront to the bank (in exhcange for getting a lower interest rate) is there anyway i can claim this back given the circustances? Many Thanks

dunstonh · 2 December 2015 at 3:34PM

Lee987 wrote: »

Hi not sure how to use this site exactly this is my first post..this is a long shot but i was wondering whether i could claim back for an admin fee i took out for a mortgage? Basically the sale of the property fell through after i paid the £500 fee upfront to the bank (in exhcange for getting a lower interest rate) is there anyway i can claim this back given the circustances? Many Thanks

If the fee was non-refundable then that means you do not get a refund. if it was refundable then that means you do get a refund.

kingstreet · 2 December 2015 at 3:59PM

You should have received a key facts illustration and section 8 shows all fees and the circumstances under which they might be refunded.

Beardo64 · 16 May 2016 at 5:09PM

I'm just about to redeem my Mortgage and noticed that Santander want this extra £225 Redemption Fee which I don't agree with. I took out the mortgage in 1990 with Abbey when no fee applied. It appears in 2005, I signed a 12 page document agreeing the new T&C's when Santander took over Abbey presumably and there was a clause on Page 6 about the fee (which I didn't spot).
Do I have grounds not to pay as I wouldn't have wanted to change my mortgage in 2005 so was locked in anyway?
Cheers

dunstonh · 16 May 2016 at 5:21PM

I'm just about to redeem my Mortgage and noticed that Santander want this extra £225 Redemption Fee which I don't agree with.

You did agree with it when you took the mortgage deal out.

It appears in 2005, I signed a 12 page document agreeing the new T&C's when Santander took over Abbey presumably and there was a clause on Page 6 about the fee (which I didn't spot).

Santander buying Abbey required no new documents to be signed. What is likely is that you bought a new deal in 2005 and signed a new contract reflecting that deal.

2005 is an important date is this means it was after mortgage regulation which started in Oct 2004. It means you would have been supplied a simple key features illustration in a fairly standardised layout which would have shown the product charges in one section. Not easy to miss.

Do I have grounds not to pay as I wouldn't have wanted to change my mortgage in 2005 so was locked in anyway?

You signed the agreement meaning you agreed it.

The regulator position is that the fee charged should be the one on the last agreement signed by you. No more. no less.

andythediver · 5 May 2017 at 2:18PM

Hi - my mortgage has one more month to go before its fully repaid.
the mortgage company has written to me - telling me that there will be a redemption fee?
I understand if i was leaving early but I have been with the same company from the start. Is it normal to be "stung" at the end of the term?
now that i am essentially mortgage free, what happens next to the paperwork for the house etc?

kingstreet · 5 May 2017 at 4:44PM

If you agreed to a discharge or deeds release fee to close the account, it would be payable whenever the mortgage ends, either naturally at the end of the term or by early redemption.

The lender can charge you only what you agreed to at the outset, or what was confirmed on the documentation if/when you changed products.

They can't add an inflation-link or anything else to charge you more.

Once the mortgage is discharged, the legal charge will be removed at the Land Registry. You may get a package back from the lender if the mortgage started before the registration of property at the Land Registry.

dunstonh · 5 May 2017 at 4:53PM

the mortgage company has written to me - telling me that there will be a redemption fee?

They are just reminding you what you agreed to when you bought the mortgage.

I understand if i was leaving early but I have been with the same company from the start. Is it normal to be "stung" at the end of the term?

Yes. And you are told these fees when you bought the mortgage or the last deal you bought (as it is deal specific rather than mortgage specific. i.e. if you bought say fixed rate deals every 5 years then the terms of the last deal get applied to the redemption)

now that i am essentially mortgage free, what happens next to the paperwork for the house etc?

I'm surprised you do not already have the paperwork now that land registry is electronic. Lenders frequently returned these to people years ago following that change. Although some may have held on to them. If you havent had yours back already then you should get it after redemption.

NEW Mortgage Exit Fees Discussion

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