Apologies if this has been asked before (couldn't find anything on a search).

I have been charged a fee of £275 for paying off my mortgage with the Woolwich. 6 weeks later and they haven't even acknowledged its paid off let alone sent on the deeds. They claimed on the phone that delays were due to staff shortages.

Can I claim anything back ? So far they don't seem to have done anything for the £275. When I took out the mortgage the figure was lower. How can they justify this as anything other than a penalty charge ? Surely it doesn't cost them that to discharge a mortgage ! Why has the charge gone up if they now have longer delays ?

Does your agrremtn state a figure for this amount? if its less liker you say then you should be entiltled to the difference

Does your agrremtn state a figure for this amount? if its less liker you say then you should be entiltled to the difference

Yes, just had a look it was £195 when I took it out.

Well what a surprise, now I've complained they have sent the deeds... no offer of a refund though.

What was interesting was that they said in the reply letter that the redemption charge was to cover ' a number of activities including preparing and issuing a full repayment and releasing their charge with Land Registry'.

Now how big does a charge for that have to be before it is considered legally unreasonable, because I bet they can't offer any evidence it actually costs them a fraction of that in admin charges ! I bet also they can't show why it had to increase from £195 to £275 this year, an increase of over 40%...

I have now asked for a deadlock letter.

You should not have had to pay this extra amount, unless they changed it and wrote to you giving you 30 dasy notice for a change in charges.

CLAIM CLAIM CLAIM! LOL!

I certainly am going to claim it back !

Interesting article here :

http://www.timesonline.co.uk/article/0,,2097-2092056.html

“The FSA stipulates that fees should bear some relationship to the costs they are claimed to cover. It also requires lenders to treat customers fairly and to provide ‘clear, fair and not misleading’ information about products and charges. The enormous increases in exit fees make a mockery of both these requirements.... A number of borrowers shocked to discover that the fee they are required to pay simply to come out of a deal has rocketed during the term have taken their complaints to the Financial Ombudsman Service.

But all the lenders involved have so far settled without the need for the FOS to make a ruling one way or the other.

Boulger said: “I suspect this is because lenders are afraid of the precedent that might be set if the FOS finds against them. It is certainly worth complaining if you are unhappy about the exit fee your lender tries to impose as a result.”

Hurray, they coughed up the £80 difference after three letters of complaint.

Well done thats good news.

Im due to sell my house soon and im sure Woolwich will try it on me so im pleased you have sorted that one.

i wondered whether anyone could give me advice-due to my reserve account incurring thousands of pounds charges for £15,000 which is attached to my morgage im now 2 months behind on my morgage,could i still send a DPA letter asking for the list of charges over 6 years or do i need to be in credit first.

I would appreciate some advice first as i have the DPA letter ready to send to Woolwich.

Thanks:roll:

You need to watch out if you ask for a mortgage redemption statement - I did and they decided that my limit on the reserve would go down to £1000 as a result of just requesting the statement. Unfortunately I had just used the mortgage reserve account to write a cheque for £3000 to buy a car. The day I wrote the cheque my online account was showing £3500 available for withdrawal.

This resulted in them telling me that I was now overdrawn on the reserve account (even though I had no idea that requesting a redemption statement reduced the limit) and that they would charge £15 per day in charges.

I told them to get stuffed and threatened legal action. How the heck is anyone supposed to know that requesting a statement alters the mortgage reserve and incurs penalty charges for amounts spent a week before the statement was even requested ? Fortunately they backed down. However I was only 'overdrawn' for three days anyway.

I'm not sure but I don't think you need to be in credit for a DPA letter - they have to answer by law. Its when you come to sue them they might want to withdraw your account/overdraft. Anyone else with experience of what Woolwich do with a mortgage reserve in these circumstances ?

I am new to all of this, i have found that i have been charged redemption charges, is there a standard letter i write to them

val

hi please read the sticky at the top. we have been advised by zoot not to start anymore ERC claims as couple have been lost in court. :o

Wooping £10,700 redemption figures.

Took my mortgage out in 2004 with West Bromwich. Discounted mortgage rate.

Come March 2007. My mortgage rate, jumped considerably . Phoned the mortgage company and was told my discount rate was finished. I then paid the full variable rate for 2 months whilst my new 2 year product came into effect.

Am about to complete, and so rang the mortgage company to see if their are any penalties. And this is what i found it.

I was told my first product was a stepped discount rate until 2009. And so although i was paying the full variable rate from march 2007, apparently the product had not finished - redemention figure £3,700

And that although I am half way through my 2 year product i have a redemption figure of 3% to pay which amounts to £6,000

total £9,700 . Something is definately wrong here.

Any advice on what i should do next. Thanks

When my fixed rate came to an end in 2008,forcasts were interests rates were due to spiral. so niavely I took on a fixed rate of 6.2 for ten years and was told the redemption figure would be £3000,the company is Santander.Well I was made redundant in April and have recently sold the house,I rang them today for my figures,My redemption is now £4000???is this legal?

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