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

[dashngail]

Here's a copy of the letter I have prepared to claim mortgage redemtion fees

Be very grateful if someone could comment on whether it's OK to send.

I'm not very confident in sending without someone having a look at it first

Thanks

Dashngail

 

 

Mortgages PLC

 

Request for repayment of redemption charge

 

Dear Sir/Madam,

 

ACCOUNT NUMBER:

 

My request

I am writing to ask you to refund to me the redemption charge levied against us. I now understand that the, are unlawful at Common Law, Statute and recent Consumer regulations.

 

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 you have operated and charged us in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

What I require

I calculate that you have charged £3,481.54 in redemption penalties this is the amount I am claiming in refund

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,

 

 

 

[ginamaunder]

hello everyone i am just selling my house at the moment and am being stung for 'early repayment fees' of 4000 do you think i should wait for the house to go through before asking for the money back or not please help

[paulpb123]

Hi Folks,

My wife just sent me this which gives advice on how to get back early redemption payments. Haven't read it all yet but it looks very promising. I can't seem to get the exact link to work but you can find it here

 

 

 

http://www.everyinvestor.co.uk

 

Not sure if I've done that right, its not underlined or anything!

 

I'll try again later.

Paul

[paulpb123]

Aha! it did work. Click the above link and the article is on that page. Good luck all.

Paul

[dolly]

Can't find the section about ERC, only the mortgage exit fee, which is different

[chrismc]

Hi Folks,

My wife just sent me this which gives advice on how to get back early redemption payments. Haven't read it all yet but it looks very promising. I can't seem to get the exact link to work but you can find it here

 

 

 

EveryInvestor - Investor news and money saving tips

 

Not sure if I've done that right, its not underlined or anything!

 

I'll try again later.

Paul

 

Cannot find it on that link??

[gizmo111]

That article is not for ERC's it is for exit fees, the big bills are those that run into thousands early redemption fees, for finishing mortgage befor a certain time.

[JulieG]

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

 

Before. I was moving house & initially offered to keep my (about to double) mortgage with them if they waived the redemption fee - but they werent having it so I arranged a mortgage elsewhere & battled it out with them.

 

In my case I was in the final year of a 6-year deal & the redemption fee was more than the remaining repayments!

 

Quoted the Unfair Terms in Consumer Contracts regulations, worked out what I considered their actual loss to be, and after a few letters they eventually waived the lot - even though Id offered to pay what I thought was reasonable.

 

Maybe I just got in early, but at the same time I managed to get RBS to refund all of the fees on my boyfriend's bank a/c caused by "timing differences" on between his mortgage & his current a/c (both with RBS!). Either I was lucky - or I really am as scary as people tell me!

 

Currently going to court with MyTravel over their belief that its OK to chop a day off my holiday & then charge me 50% if I want to cancel as a result!

 

Keep on Fighting!

Julie

[darren oomen]

ok so uve got me intrested are we saying that the banks / societys cant charge tese amounts what so ever because this isnt what it cost them. i know i sound silly but when i took out the mortgage i thought that part of the redemption fees was part of the contract so why can i claim money back and is ther a deadline to do this in . cheers for any help any one can give as a thankyou check out Brainstorm Gifts LTD enter BC0602 and get 10% discount on anything you order.

[gordonhall]

Hi Darren,

 

The issue is the same here as it is with bank charges themselves. Just because it says in the terms and conditions that they can do it, it doesn't make it legal.

 

Tell, you what, you have it in writing now that I'm going to come round and steal your car tomorrow afternoon. It's in writing, and I've told you I'm doing it, so it must be legal then?

 

 

They can't do it in bank charges, and we're bcoming fairly certain that they can't do it with mortgages either.

[gordonhall]

P.S. If you car DOES get stolen, either tomorrow afternoon, or at any other time, I promise you that it wasn't me!!!!!

[JulieG]

are we saying that the banks / societys cant charge tese amounts what so ever because this isnt what it cost them.

 

Hi darren

 

Basically the UTCC regulations say " a requirement to pay more in compensation for breach [of contract] than a reasonable pre-estimate of the loss to the supplier is one form of excessive penalty. Such requirements will, in any case, normally be void as a penalty under English common law".

 

It goes on to say "an unfair penalty can apply to any term which requires excessive payment in the event of early termination"

 

Julie

[dashngail]

I have just written a letter to my current mortgage provider.

During this past year we have hit major fianancial problems due to health, back on track now though thank goodness.

 

I have checked out annual statement between Aug 05 and March 06 we have charges for £257, (plus £105 since the statement arrived) on the statement they are listed as arears fees.

 

During that time the DSS were paying part of the mortgage and we were attempting to pay the rest. We were in regular contact with Birmingham Midshires, yet what seemed to happen after every month was they sent out a letter telling us we were in arrears at a cost of £35.

 

We have been back to work and paying the full mortgage plus £30 every month since April to reduce the arrears. We still have an arrears of a few hundred pound left which we have discussed with BM yet still every month we get a letter.

 

We are a little nervous about claiming due to that fact that we still have the arrears, we have read that banks can attempt to close accounts when someone claims, is this the case with mortgages.

 

After I just wrote the above I feel a stupid asking, but if someone could just reassure us the nothing can be done with regard to our mortgage

 

Thanks

dashngail

[chrismc]

I have just written a letter to my current mortgage provider.

During this past year we have hit major fianancial problems due to health, back on track now though thank goodness.

 

I have checked out annual statement between Aug 05 and March 06 we have charges for £257, (plus £105 since the statement arrived) on the statement they are listed as arears fees.

 

During that time the DSS were paying part of the mortgage and we were attempting to pay the rest. We were in regular contact with Birmingham Midshires, yet what seemed to happen after every month was they sent out a letter telling us we were in arrears at a cost of £35.

 

We have been back to work and paying the full mortgage plus £30 every month since April to reduce the arrears. We still have an arrears of a few hundred pound left which we have discussed with BM yet still every month we get a letter.

 

We are a little nervous about claiming due to that fact that we still have the arrears, we have read that banks can attempt to close accounts when someone claims, is this the case with mortgages.

 

After I just wrote the above I feel a stupid asking, but if someone could just reassure us the nothing can be done with regard to our mortgage

 

Thanks

dashngail

 

Dashngail

 

I am not sure what tac your mortgage company would take if you go after reclaiming fees etc, it may be a bit risky?? but I may have something that coud help with future arrears fees.

 

Do you pay your mortgage on the 1st of each month? if so call the company and ask if you can pay it on the 30th or 31st of each month instead. You will have to confirm what I tell you is correct, but it worked for me.

 

The reason is you are always trying to catch up and so therefore always in arrears, however, sometimes if you pay a day early technically you maybe in arrears, but their systems say you are up to date!!! and therefore are not in arrears and so therefore they cannot charge you for sending out a letter.

 

As I said this worked for me, not totally sure why but may be worth checking with your mortgage company and see what they say, just explain to them why you are asking and if it would resolve the problem.

 

Chris

[yamyam]

I have read through all of the posts and am going to the bank tomorrow to get a redemption statement - I have just sold my house and was informed that i will need to pay the redemption penalty when i give the money back and then apply for a new mortage !... I knew it was there just wasnt sure how much it was - so i checked - and it makes my blood boil that they want that much for what....???

 

Could someone please repost the calculation for working out whats fair in redemption penalties. I have 30 more months to pay on a 36 month fixed rate mortgage ...so just want to be sure I am using the correct figures... and if I get them back i will contribute - promise..

[icarusdragon]

Sorry to jump in but I have just come to the end of a two year fixed deal with GMAC and requested a remortgage with them. Now baring in mind my penaulty date ende 1st of July this year and the Re- Mortgage was to be completed by the end of this week ending the 7th July. I have just been informed because I have not given them one months notice I will have to pay the peaulty:mad: approx £4000:oDon't think so if they want my repeat bussiness they will back down.

As far as we were concerend including my morgtgage adviser we did give them notice with the notice of intention of the remortgage with them:confused:

 

What does every one else think to this one:idea:

[Nightmare4banks]

icarusdragon,in reply to your posting:

 

1.In my view there is no justification for making you pay the redemption penalty considering that the date that you are redeeming the mortgage is after the final redemption period date.

 

2.I would tell GMAC if I were in your shoes that you were a loyal customer between the dates specified and to see to make sure you do not pay the redemption penalty.

 

You say that the notice was given regarding the remortgage - do you have written evidence?

 

 

I hope you find this information useful.

 

The answer to the above question should hopefully enable me to assist you further.

[icarusdragon]

Sorry Nightmare4banks

No written evidence as such, but My mortgage advisor has been on to the account manager at GMAC and both agree it seems unfair awaiting response!

As far as myself and advisor were concerned the application to renew our mortgage with GMAC which was submitted at the early part of June was in it's self a application of intent to give notice. Hey possible some jobsworth just ticking box's and sent through as a standard application. Will see what comes back will keep posted :-|

[Nightmare4banks]

Hi all!

 

icarusdragon,in my view:

 

1.GMAC is in a very weak position to attempt to claim the redemption penalties monies because the remortgage completion date is AFTER the expiry of the redemption penalty period.NOTHING MORE! NOTHING LESS!

 

2.As you said in your previous posting the notice of intention to remortgage with your financial advisor should be enough and be an implied notice it is own right i.e.your actions have told GMAC that you intend to remortgage so GMAC should sod off!

 

Anyway that is my 2 pence worth!

 

If you have any more questions,just ask.

 

Keep us posted.

 

All the best!

[Stevegrray1978]

Just to keep you informed, got a letter from Platform (Britannia) this morning, saying that they're looking into my 'concerns' and have passed my letter to 'Redemptions' to investigate... I wait with baited breath!

[robbroadhurst]

Hi Carrie,

I am going to ask the Woolwich for my redemption penalty charge to be refunded . Is it possible that you could show me the letter that you wrote initially and any other tips you may have for me.?

 

Bob

[maroonfox5]

Bob

 

Re your request

 

I've just drafted this one up from bits and you're welcome to use it or comment on it as well as anyone else for that matter:) .

Regards

 

MF5

 

Request for refund of early repayment charge

Mortgage Account No. xxxxxxxx

 

Dear Sir/Madam

 

I refer to the above numbered mortgage account which was for our former property at xxxxxxxxxxxxxxxxx

 

My request

I am writing to ask you to refund to me the early repayment charge of xxxxxxxx which you levied when we repaid the mortgage in full after we sold our property on xxxxxxx.

 

It has come to my attention that this "early repayment charge"is in fact a redemption "penalty" and is therfore unenforceable both at common law and under the unfair terms in consumer contract regulations.

 

I would draw your attention to the two following paragraphs which are an excerpt from the Office Of Fair Trading website:

 

A term in a mortgage agreement which requires the borrower to pay more for breaching the contract terms than actual costs and losses caused to the lender by the breach (or a genuine pre-estimate of that) is likely to be regarded as an unfair penalty and to be unenforceable both at common law and (in a consumer mortgage) under the Unfair Terms in Consumer Contracts Regulations.

 

A redemption charge may be regarded as a penalty even if it is expressed as the price for exercising a right rather than a consequence of breaking the agreement

In view of the above paragraphs, I would appreciate it if you could confirm exactly how this penalty was calculated and the true costs to xxxxxxxxxx, by us redeeming the mortgage early. I would appreciate a complete breakdown in your costs and losses for this penalty charge.

 

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 sincerely

[maroonfox5]

Ps

Leave the Mortgage Express bit out:oops: (forgot to delete that bit) LOL.

 

Will start a new thread when I get this one going under a slightly different heading.

 

Regards

 

MF5:)

 

I've Just seen the edit tab (DOH) and done it for you!

[catherinebear]

Hello there everyone

 

We are in the process of claiming back fees from the abbey amounting to £11,000, but have recently remortgaedand had to settle 4 months early because of finances even though I was disabled and going to be homeless Kensington Mortgages added on £8,000 if anyone can tell me where I find the sort of template letter to send to them I would love to hear as you can imagine I would love to get the money back if I can.

 

Catherinebear

[Bonus77]

Just going back over some old paper work from 2004 and noticed I paid nearly 5k early redemption penalty from Kensington and £500 from SPPL.

 

Time to attempt a reclaim, Im not sure how far into my redemption period I was, but I think it was about 6 months from the tie in so hopefully I have a case.

 

I will post on my progress.