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  • FIRST POST
    • MSE Martin
    • By MSE Martin 6th Mar 07, 10:39 AM
    • 8,116Posts
    • 42,296Thanks
    MSE Martin
    NEW Mortgage Exit Fees Discussion
    • #1
    • 6th Mar 07, 10:39 AM
    NEW Mortgage Exit Fees Discussion 6th Mar 07 at 10:39 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 7:18 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.

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Page 1
  • FUNNY-ABOUT-MUNNY
    • #2
    • 6th Mar 07, 3:23 PM
    overwhelmed? where do i start???
    • #2
    • 6th Mar 07, 3:23 PM
    We have re-mortgaged so many times in the last 10 years i don't have the contracts or redemption breakdowns from any of the lenders. what should iask them to send me when i call?

    we could have bought a new house with all the fees we have been charged over the years!

    i am determined to see if i can get anything back, but i don't really understand what a MEAF is and what other name it could have? Could it be the £175 mortgage repayment administration fee from the Halifax in 2006?

    or the £225 repayment fee from the Abbey in 2005?

    we have also had mortgages with EGG and Nat West but no paperwork from them anymore.

    please help. We are desperate, desperate, desperate for a little extra money and this could potentially be the answer to my prayers.

    sally xxx
    SUCCESSFUL CLAIM OF UNFAIR CHARGES £1400 FEB 2007

    STRUGGLING AND LEARNING TO LIVE WITHIN MY MEANS

    SOLD HOUSE TO HALVE MORTGAGE...
    • Beate
    • By Beate 6th Mar 07, 8:33 PM
    • 3,521 Posts
    • 4,198 Thanks
    Beate
    • #3
    • 6th Mar 07, 8:33 PM
    • #3
    • 6th Mar 07, 8:33 PM
    Thanks for the update. I am not quite sure about asking for interest on top though. The table states that only 3 of all the lenders will pay interest, and none of them at 8%, so why trying to twist their arm? As I understood from the bank charges forum is that interest can only really be claimed when going to court, so why go to court for a few pounds of interest?
  • PHOEBE
    • #4
    • 7th Mar 07, 7:17 AM
    • #4
    • 7th Mar 07, 7:17 AM
    mortgage discharge fees

    Hello
    I am wanting to confirm if I have a case to reclaim any fees from my last morgage lender?
    I redeemed the morgage early.

    I repayed £64630.56 of £126,117.28 (10 year mortgage taken out in September 2001) to Northern Rock 1.8.03 , re- morgaged £65,000 with the Halifax.

    The paid up date with Northern rrock for full mortgage repayment should have been 2008 with 'no penalty clause' applicable after two years.

    the final statement from Northern Rock lists charges as follows, and as I am not sure what is reclaimable, I would like some advice ?-

    1. Deeds despatch Fee £80.00
    2. Discharge Fee £95.00
    3. Help with costs £400.00

    thanks for any advice you can give

    PHOEBE
    • Former MSE Wendy
    • By Former MSE Wendy 7th Mar 07, 7:23 AM
    • 868 Posts
    • 1,782 Thanks
    Former MSE Wendy
    • #5
    • 7th Mar 07, 7:23 AM
    • #5
    • 7th Mar 07, 7:23 AM
    Hi Pheobe

    You can request a refund for the difference between the original charge quoted in your contract and the actual charge paid, for the Deeds Despatch Fee and Discharge Fee but not the 'help with costs'. Some lenders are treating the deeds despatch as a separate fee but others treat as one, so ask for both and see what they say.

    Good Luck,
    Wendy
    Last edited by Former MSE Wendy; 07-03-2007 at 7:27 AM.
    • foolsgold99
    • By foolsgold99 7th Mar 07, 9:02 AM
    • 388 Posts
    • 73 Thanks
    foolsgold99
    • #6
    • 7th Mar 07, 9:02 AM
    • #6
    • 7th Mar 07, 9:02 AM
    Hello, I'm in the same boat as Funny-about-munny and would really apprecaiate some help and advice. I took out my forst mortgage with the Halifax in Dec 2004. I just remortgaged (to Nationwide) in Jan 2007. I noticed that on my final Halifax statement it says "Repayment Admin Fee = £175.00". I don't have the original Halifax document which states what the repayment charge would be. Does anyone know if I can claim anything back and if so what is the best way to do it?
    Thank you very much in advance. Your help would be greatly appreciated.
  • PHOEBE
    • #7
    • 7th Mar 07, 11:27 AM
    • #7
    • 7th Mar 07, 11:27 AM
    Wendy thanks for
    your help. sorry about all the messges but not sure how the site works?

    Thanks anyway - very helpful
    PHOEBE
    • MarkyMarkD
    • By MarkyMarkD 7th Mar 07, 11:27 AM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    • #8
    • 7th Mar 07, 11:27 AM
    • #8
    • 7th Mar 07, 11:27 AM
    I have to disagree with this section in the updated article:
    It's arguable that MEAF fees aren't justified, much like with reclaiming bank charges the basic concept is that under UK contract law, you can't fine someone for breaking a contract, you can only charge them an amount proportionate to the cost of the breach.

    The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work.

    If you want to adopt this more militant approach then the following template letter should help, though if your lender refuses you may then need to threaten small claims court action.
    by MSE Martin
    There is absolutely no logic in this "arguable" position.

    Redeeming your mortgage is NOT a breach of contract. It is an option for every mortgage borrower to redeem their mortgage at any point in time. The fact that there is an exit fee associated with the end of the contract doesn't make it a penalty - it's a payment that is only due at the end of the contract.

    Therefore the unfair penalty charges angle is completely irrelevant.

    The fact that some people have "succeeded" by threatening small claims court cases using this "angle" doesn't prove anything other than the fact that the cost of defending the cases (which the lenders would definitely win) is uneconomic. It isn't moral, IMHO, to take people (or companies) to court to recover amounts of money which you are not entitled to, just because the third party is economically likely to cave in.
    Last edited by MarkyMarkD; 07-03-2007 at 11:29 AM.
  • smigger15
    • #9
    • 7th Mar 07, 12:55 PM
    • #9
    • 7th Mar 07, 12:55 PM
    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.
    by MSE Martin

    I rang Abbey National and they send out a standard form to fill in with your dets on and return it. Only one sheet so relatively easy. I'll post if i hear anything.
  • borolee
    Rebuffed for refund
    I arranged a mortgage in June 05 with BIM, and had the contract stated a release fee of 195. When i remortgaged last year i was indeed charged 195. Can i still claim back any fees as i still think this fee is high for the work involved??

    Thanks
  • borolee
    What next???
    When i arranged my mortgage, the fee quoted was 195, and this is what i was charged when i remortgaged. However, I still feel that this charge is not reflective of the costs incurred, and when i have written to the bank, they say they will not refund, as i sighned up for this fee.

    What else can i do???
    • foolsgold99
    • By foolsgold99 7th Mar 07, 1:28 PM
    • 388 Posts
    • 73 Thanks
    foolsgold99
    Hi, just to let people know. My mortgage started with the Halifax in Dec 2004. I remortgaged to the Nationwide in Feb 2007 and the Halifax charged me £175 exit fee.
    I just phoned them on 08451 203033 and they said that my mortgage exit fee when I took out my mortgage in Dec 2004 was £115 and they would send a check for £60.
    I told the guy on the phone that some people were getting varying amounts and he said it's because the fee varied from month to month i.e. the fee in March 2004 was £75 but in Dec 2004 it was £115. I didn't have the original statement to check if £115 was correct so I just accepted the £60. I hope that this was the right thing to do and that helps some people.
    • foolsgold99
    • By foolsgold99 7th Mar 07, 1:37 PM
    • 388 Posts
    • 73 Thanks
    foolsgold99
    I just found this link: http:

    //www.thisismoney.co.uk/mortgages/article.html?in_article_id=417037&in_page_id=8#y

    It gives you a list of Mortgage providers and the relevant dates and exit fee charges. Worth having a look before going on the phone.

    Hope it Helps
  • gesso
    no exit fee paid
    I conacted Barclays today by phone on the number listed here only to be told that we had never been charged an exit fee:confused:

    Not that I dont trust Barclays or anything but is this a new dodging tactic?

    or has anyone else eperienced the same?

    cant talk to my new mortage provider at the mo so cant find out if this is the case.
  • DorothyA
    We owe £1 on our mortgage
    We have paid our mortgage off with Nationwide except just £1, this allows us to obtain another loan without all the paperwork, so they said. But also we have not paid the exit fee of £90. Does anybody know whether we would still now have to pay this sum (£89).
  • JulieBarlow
    Can anyone tell me if we would be able to reclaim anything, we have changed mortgage 2 or 3 times in the past 7 years but have always stayed with Chelsea Building Society. We have always waited until after the early repayment period ends so that we don't get hit with that fine but we have always been charged an admin fee for changing the mortgage product. All the articles I have read on re-claiming fees have related to either paying off the mortgage in full or moving companies so I am wondering if we have a case if we stayed with the same company but changed mortgage with them? The latest change was in January this year and the fees charged were a whopping £640!!! To stay with the same company and just change the product we have with them this seems a rather extortionate amount of money! Do you think I should write to them and complain or do I not have a case?
    • Former MSE Wendy
    • By Former MSE Wendy 7th Mar 07, 4:57 PM
    • 868 Posts
    • 1,782 Thanks
    Former MSE Wendy
    Mulitiple responses
    There have been lots of good questions posted, so though i'd try and answer a few to give everyone an idea of what they can do to get their refunds.

    Funny about munny – yes the mortgage repayment administration fee from the Halifax and the repayment fee from the Abbey both count. The refund you will get will depend on when you started your contract, just phone them up to find out. The same goes for any lenders you don’t have the details for, phone them up in the first instance to see that they can tell you. If they can't help you can then look for the info elsewhere, but they may be able to tell you all you need to know. Well done for the successful claim of unfair charges, hopefully this will get you a bit of extra cash too

    Borolee – If you think the fee you were charged is too high, 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 your lender decides to do this.

    Gesso – if you have been told you're not entitled to a refund check to see if the fee changed in price over your contract term, this would depend on when your contract started and finished.

    DorothyA – leaving a little bit left on your mortgage is fine as long as your lender allows an account to remain open at this amount. If they do you shouldn't have to pay the exit fee.

    JulieBarlow - the admin fee for changing mortgages sounds like an arrangement fee rather than an exit fee, if in doubt you could ring and ask.

    Regards, Wendy
    Last edited by Former MSE Wendy; 08-03-2007 at 10:20 AM.
  • Retro23
    Hi we bought our house in 1996 and took out a mortgage with TSB which then became a C&G mortgage. About two years ago we moved our mortgage to egg and was charged a MEAF, we have none of the original mortgage paper work left and nothing to show what we were charged at the time, my question is will C&G have all the details needed even from before it became C&G?

    Steve
    Waddle you do eh?
  • gesso
    There have been lots of good questions posted, so though i'd try and answer a few.



    Gesso – this would depend on when your contract started and finished.


    Regards, Wendy
    by MSE Wendy
    hi Wendy the times are mortgage opened 04/2000 barclays
    then 21/02/2003 added £5k onto mortgage which generated paperwork with title 'mortgage offer' (new mortgage)? :confused:
    admin fee of £150

    switched to halifax 7/06/2006
    • Beate
    • By Beate 7th Mar 07, 5:52 PM
    • 3,521 Posts
    • 4,198 Thanks
    Beate
    If a mortgage was taken out in 1991 as an endowment mortgage, changed in 1996 to a repayment mortgage and changed in 2004 to an interest-only mortgage, then paid off in 2006, could you still claim the difference between 2006 and 1991, or would they say it was a different product and the only difference they can pay out is between 2004 and 2006?
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