Mortgage Exit Administration Fees - unlawful fee or not

[SHERLOCK]

Hi all,

 

wondering if anyone can shed some light on 'MEAF's', read in local paper that the FSA are questioning these fees, see shortcut below.

 

Is it time to ask for these back too??

 

http://www.fsa.gov.uk/pubs/other/meaf_goodpractice.pdf

[Rob S]

Absolutely! I sold my flat last year and bought a house. Northern Rock charged a discharge fee of £250. I had had a mortgage with them for 16 years and felt aggrieved at such a high charge, so I wrote to them and pointed out that Nationwide only charged £90. I also told NR that Nationwide waived the fee if the mortgage had less than 10 years to run.

 

NR responded and refused my request, so I wrote and asked them to provide a full breakdown of the costs they incurred in discharging my mortgage. They declined to reveal thier true costs, but offered me a full refund of the charge. Of course I accepted:D

[SHERLOCK]

This report claims that some mortgage exit fees have been doubled in the last year or so and as such the FSA are asking for a breakdown of the costs applied in administering this fee.

 

If the mortgage company do not revert back to their old fee the FSA want to know why??

 

I'd say with the technology today it is getting cheaper to prepare admin not dearer, so it is definitely worth chasing.

[cougar25]

This report claims that some mortgage exit fees have been doubled in the last year or so and as such the FSA are asking for a breakdown of the costs applied in administering this fee.

 

my mortgage exit fees/ early redemption charges with northern roack are a percentage of the mortgage (3% i think).

 

Does anyone think i would be able to avoid paying this if i move my mortgage?

[Rob S]

I don't know about avoiding it, but there is no harm in trying what I did and writing to the bank/building society and asking them for a full breakdown of their charges. There is a wide variance in the charges ( I think the lowest fee is £90 by Nationwide). If you have a mortgage with a lender charging well over £200, ask them to justify why it is so high.

[SHERLOCK]

Cougar this is not to be confused with the ERC.

This a SET fee, you know, found under the astronomical list of fees like Land Registry fees, deeds release fee etc. Just the odd £200.00 here and there.

[cougar25]

ok guys thanks for clearing that up. I understand now that exit fees are different to the other extortionate fees, but i think ill do as rob.s says and simply ask them why they are so expensive, after all they do label the 3% as an administration charge! Quite expensive paper if ya ask me!!