My Mortgage Fees Were Refunded!!!!!!!!

[thunderpuss2k]

Evening.. just saw this when I was surfing, so popped it in a post.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?p=86925#post86925

[amber2508]

Please don't shout if this question is way off what your all talking about as i am new and not clued up on mortgage stuff.

 

I have had a Mortgage with the same building society for 4 years now. The first 3 years were fine and i could afford the payments but i got into financial problems, through being unemployed and all the bank charges snowballing etc. So i asked if i could have an interest only mortgage for 2 years, (payments are now £200 less than before) when i will hopefully in a better position to go back to the normal repayment mortgage. They agreed and charged me £500 for the privilege. I did not have to pay this to them there and then but instead it was added to my mortgage balance. So i was wondering could i try to claim some or all of this back, or this it a legitimate charge for the service of a changed mortgage type?

 

Thank you.

 

Amber x

[Seminole]

Please don't shout if this question is way off what your all talking about as i am new and not clued up on mortgage stuff.

 

I have had a Mortgage with the same building society for 4 years now. The first 3 years were fine and i could afford the payments but i got into financial problems, through being unemployed and all the bank charges snowballing etc. So i asked if i could have an interest only mortgage for 2 years, (payments are now £200 less than before) when i will hopefully in a better position to go back to the normal repayment mortgage. They agreed and charged me £500 for the privilege. I did not have to pay this to them there and then but instead it was added to my mortgage balance. So i was wondering could i try to claim some or all of this back, or this it a legitimate charge for the service of a changed mortgage type?

 

Thank you.

 

Amber x

 

I don't think you would succeed in making a claim. It's hard to see how it could be classed as a penalty rather than a charge for a service.

[Nightmare4banks]

Hi all!

 

amber2508,in my view:

 

1.To change a mortgage product is a totally "acceptable service" within the parameters of a mortgage contract.

 

2.However,the £500 seems very excessive.At the end of the day,all the mortgage company has to do is change the code of your mortgage product from Capital & Interest to Interest Only and send you out some paperwork.

 

3.I would have considered the maximum fee acceptable to be around £200.

 

In conclusion:

 

a.Are you sure that the £500 does not include fee/fees for something else?

 

Please "double check" your mortgage paperwork and post your reply here so that we can give you some suggstions as to the best way(s) forward.

 

Anyway,I hope this helps.

 

If you have any more questions,just ask.

[yeff]

Hi, this thread is interesting, as I have just changed my mortgage to a different one with the N/R. Even though it is with the same company, they charged me £6,500 early redemption fee for doing this,as well as a £399 administration fee, as I changed it 2 years early because of the lower repayments on new product.

Thought that was right as I changed to new mortgage early, but would be interested to see if anyone else has any luck with trying to reclaim these fees?

[Rob S]

£500 to change a mortgage from repayment to interest only seems excessive. I was charged £50 in 1993 to change from interest only to repayment, which I considered a reasonable enough charge.

[Leebee]

Hi

 

I was just wondering if anyone knew if it was possible to ask for a refund of mortgage charges if the mortgage is not with a bank, ie Future Mortgages

 

Thanks

[Seminole]

Hi

 

I was just wondering if anyone knew if it was possible to ask for a refund of mortgage charges if the mortgage is not with a bank, ie Future Mortgages

 

Thanks

 

Makes absolutely no difference. Then penalty charges argument is generall applicable and not limited to banks.

[Movingon]

Makes absolutely no difference. Then penalty charges argument is generall applicable and not limited to banks.

For instance (completely hypothetical situation) your council tell you that you have to dig a hole 3' long x 5' wide x 7' deep or else you're going to be fined £20. You engage the services of a professional hole digger who lives two doors down for £50. He digs the hole wrong and the council fine you £20.

 

ALL YOU CAN GET BACK FROM THE HOLE DIGGER IS THE £20, plus the money you paid him. If you demand any more you are levying punitive penalty charges and your demand is unenforceable.

[Leebee]

oops, I think I've gotten the wrong end of the stick......I was meaning claiming back mortgage charges like you would bank charges, am I wrong??

[Movingon]

It depends which charges. Early redemption penalties, yes... because they're bang out of order. But charges for you asking for something to be changed? Nope...

[Leebee]

I meant late payment charges etc

[Movingon]

Then that's exactly the same as late payment charges for anything else...

[paulpb123]

Is the consensus that early redemption charges are illegal? I paid #15,000 to escape from an awful mortgage, but stayed with the same company. Seems excessive to me!

Paul

[Seminole]

Is the consensus that early redemption charges are illegal? I paid #15,000 to escape from an awful mortgage, but stayed with the same company. Seems excessive to me!

Paul

 

The jury is still out on that one. Some people are trying to get them back. I am watching with interest.

[Stevegrray1978]

This sounds really interesting. Paid about 3000 to Platform last year to settle my mortgage. Have had a read through this and have 'tweeked' the prelim letter; anybody got any opinions? Thanks in advance.

 

Request for repayment of charges

 

Dear Sir/Madam,

 

ACCOUNT NUMBER: xxxxxxxxx

 

 

My request

I am writing to ask you to refund to me the ‘Redemption Penalty’ charges which you levied on my mortgage account when I settled the balance last year.

I now understand that the redemption penalty fee which you applied to my account in order for me to pay off and close the mortgage is unlawful at Common Law, Statute and recent consumer regulations. If you say that they are not, then will you please demonstrate this by letting me have a full breakdown of the costs to which you have been put as a result of me paying off my mortgage with you early, in order to reassure me that your penalties really do reflect your costs.

In Common Law you can only recover liquidated losses stemming from a breach of contract - that is, money which it has actually cost you to end the contract early.

 

To quote The Govan Law Centre: "charges represent a penalty and are therefore irrecoverable at common law. In the Scottish case of Castaneda and Others v. Clydebank Engineering and Shipbuilding Co., Ltd. (1904) 12 SLT 498 the House of Lords held that a contractual party can only recover damages for actual or liquidated losses incurred from a breach of contract. This is also the position in English law: Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79."

 

Your responsibilities

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

I am frankly shocked that when I settled my mortgage with you, you operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

I consider that your contract suggested that your redemption penalty charges are fair, legal and reasonable are deceptive and that they have deceived me into agreeing to pay them. Your concealment of the true nature of your charges has prevented me from asserting my right until now.

 

What I require

I calculate that you have taken £XXXXX in redemption penalty charges, which I paid at the time I settled my mortgage with you. I require you to return this sum to me.

 

My targets to resolve this matter

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets.

 

I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive payment.

 

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that these targets are more than sufficient for a large company such as yours with dedicated staff and departments.

 

After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.

 

Yours faithfully

[paulpb123]

Hi Steve,

Sounds good if only it were a FACT that the redemption charges can be recovered in the same way as bank charges. Or are they bank charges? Very best of luck to you with this one. I'm going to start a new thread about this and see if we can get some good advice.

Paul

[maroonfox5]

Paul and Steve,

 

I think it's worth a try ,after all the point of arguament is that the charges are a "penalty" levied by an early termination of the mortgage within an agreed term.

Therefore they are not entitled to make a profit on the charge ,just recover their cost and any loss(possibly the difference between the discounted figure and the standard figure).

 

All in my honest opinion.

 

Regards Mark

[JulieG]

I feel a bit of an "old hat" as I managed to get my mortgage redemption fees (6%) cancelled way back in 2001 !! It took me 5 weeks and 3 letters, but I got there!

 

Good luck to anyone else who tries it - it can be done!

[chrismc]

I feel a bit of an "old hat" as I managed to get my mortgage redemption fees (6%) cancelled way back in 2001 !! It took me 5 weeks and 3 letters, but I got there!

 

Good luck to anyone else who tries it - it can be done!

 

JulieG

 

Did you get them cancelled before you paid off the mortgage or afterwards? could you give us some more information.

 

Thanks

Chris

[Stevegrray1978]

It would be graet if you could explain a bit more what you did to get your money back, Julie. Any advice would be gratly appreciated! This seems to be a grey area...

[TRIXIE]

I've read this thread with great interest too, and I too would appreciate more information on what steps you took and to hear about any experiences people have had.

 

2yrs ago I was forced to change mortages from Kensington (I got divorced, kept the house but they refused to give me a mortgage on my own) they charged me a £9k redemption fee which I then had to put on my new mortgage... I'll start a new thread once I find out more information on my mortgage.

[Stevegrray1978]

9K!! That's terrible! There is NO justifucation for a charge like that. My god. Shocking!

 

I know the OFT are looking at mortgage charges at the mo and are reporting back next month. Sooner the better!

[lickthewallfatboy]

I sent off a DPA to Birmingham Midshires,and got a pro forma back to fill in-a section on the form had a box entitled-"reason for this request"......I filled in that my accountant wanted the information......well,"he" does want it.....I am my own accountant at the moment;-)

 

I wonder if they are getting worried?

[giveitbacktome!]

hi been reading through this thread - sounds very interesting. but was wondering if anyone can answer this.

 

i still have a mortgage with a non-highstreet lender, im tied for 3 years of which im 2 yrs into (1 more year to go)....if i pay my mortgage off now i will have to pay a £7k redemption penalty...i want to sell the house as i'm paying far to much out, but at the same time i dont want to lose myu £7k of equity in the house. as i havent actually been charged this yet, is there anything i could possibly do to get this redemption charge removed so i can sell the house, pay my mortgage lender back, and walk away with the remainder?

 

thanks

 

rob