Mortgage Exit Fee refund

[Balti]

If anyone has changed UK mortgages in the last few years it might be worth checking out if you are entitled to a refund. The FSA has ruled that the fee of £95 was the legal max but many us were charged much more.

I just got £200 back! No hassle. Just ring 'em up with as many details as you can lay your hands on and they will tell you what you paid, how much you overpaid and stick a cheque in the post.

Good Luck!

http://www.moneysavingexpert.com/reclaim/mortgage-fees

 

[interpol]

Reading all that, seems to suggest that it only applies if your "exit fee" was actually higher than advertised when you took the mortgage out.
You can't just get your exit fee back regardless.

 

[Balti]

Reading all that, seems to suggest that it only applies if your "exit fee" was actually higher than advertised when you took the mortgage out.
You can't just get your exit fee back regardless.

If you paid more than £95 then you can get the difference back I believe. Many companies put the exit fee up to £195/£295 which would have just disappeared in the big sums moving around when mortgages change for most people. But legally they could only charge £95 and the FSA have made all the lenders set up helplines and processes to refund anyone who is due.

Probably applies to people who switched lenders 2 - 7 years ago.

I literally rang the helpline number on that page, told them my old mortgage number as I still had the paperwork on file, and they confirmed that I had paid £295 as my exit fee when I changed lenders and that I was therefore due £200 back and the cheque arrived a week later.

Just thought it might help someone on here and it only takes a phone call to find out.

 

[interpol]

Sounds good.....however my exit fee was £150 and was advertised as £150 when I took the mortgage out 2 years earlier. Not sure I'd have much grounds to complain.

 

[jiddly]

I got charged £395 (exactly what they advertised as their exit fee) switching from Abbey to Alliance and Leicester (irony!) and got the lot back. I complained that it was too large an ammount and was unjustified. They initially offered £200 to shut me up. I sent back another letter asking themto show me evidence of the costs of me exiting the arrangement...I got the full refund with the next reply.

Make it clear that the exit fee is unreasonably high to their costs (legally all they can charge you is what it costs them to administer your exit).

...and don't give in. They will try to fob you off. Just keep going till they give in.

 

[jiddly]

Sounds good.....however my exit fee was £150 and was advertised as £150 when I took the mortgage out 2 years earlier. Not sure I'd have much grounds to complain.

You have every right.

<a class="postlink" href="http://savingsfriend.co.uk/mortgages/how_to_claim_back_mortgage_exit_fee_and_mortgage_arrears_penalties.htm" onclick="window.open(this.href);return false;" target="_blank">http://savingsfriend.co.uk/mortgages/ho ... alties.htm</a>

Ask for a full refund...when they say no, ask for proof that their actual administrative costs are £150. Don't take no for an answer.