Mortgage fees: How much are you owed? by Finance News Bulletin

Published: 07/02/07

information Companies & markets Investing Power portfolio Campaigns Mortgages & homesMortgage featuresInsurance customer advice Broadband & phones Retirement Saving & banking Credit & loans Small business Tax & wills communication boards Money blog gear & calculators Ask an expert Guides Compare & pay money forMortgage lenders have been accused of levying unjust exit fees on borrowers

They are now being forced to repay those charges understand writing the information and tables below to see if you could get back

The history: Mortgage exit administration fees remained static for many years Then, in 2004, encouraged largely by one lender, coalition & Leicester, they started to rise dramaticallyThe lenders argued they had a correct to increase the fees – because it said they could in mortgage contracts Had lenders just raised the fees self-effacingly in line with inflation, no-one would have protested

But greedy banks pressed up the fees by hundreds of pounds to anything as far above the ground as £300, and borrowers were not going to put up with itNow the watchdog, the Financial Services power, has agreed that some of these increases were unfair Borrowers who salaried the fees – for instance if they switched their mortgage absent or cleared it altogether – are likely to be payable a refundMortgage customers are being hit with unfair fees when they close their accounts

go after these links and you could reclaim £200 or moreHow much you might be owed depends on two things

Firstly, the least you should get back is the difference between the charge you paid (say £295) and the charge that was written on your original mortgage agreement speak £75) That is why the following list will assist Look up your past lender and gauge whether the way out fee increased while you were a customer Then demand the difference

Secondly you can also protest simply because you feel the fee you paid was too far above the ground Rather than let you take the matters to the monetary Ombudsman or the little claims court, the bank may simply pay you back some of the cash The true cost of closing a mortgage is estimated to be £35REMEMBER: These exit cost are fees charged for managerial work

They are not the same as near the beginning redemption penalties, which may be levied if, for example, borrowers close their mortgage within a special interest-rate periodIn January 2004 the combined exit fee and performance release fee were set at £195, up from two divide fees of £160 In imposing 2004 this rose to £295Current borrowers who signed up prior to August 2004 will disburse £195 if they close their accounts

Former customers who salaried £295 but signed up previous to August 2004 will be refunded £100 without quibble, if they complain It may still be value demanding more of a refund, because A&L still appears unprepared to justify its very high accuse In the past, threats of resorting to the little claims court have resulted in full refunds being made by A&LIn 2003 Barclays had a charge of £150 and Woolwich £190

In July 2003 both were made the same at £150 In March 2003 the charge increased to £195 and then again in December 2005 to £275 This includes the deeds release chargeBarclays/Woolwich says it will levy only the fee that was on current borrowers' agreements when they signed up

In other words, it is unlikely to query complaints from former borrowers who have already paidWoolwich says it needs former borrowers to complain by phone, claiming this will be quicker Call 08000 234180 from Monday February 5In 2003 the fee was £140 advantage a performance release charge of £50

In 2004 this rose to £175 plus £60In 2003 the way out fee was £100 plus a deeds release charge of £50 These were amalgamated in March 2004 In September 2004 this rose to £175 and again to £195 in April 2005

In 2003 the fee was £50, increasing to £75 in imposing 2004 An extra deeds release charge of £35 appliesThe charge was set to rise to £125 but the society says this increase is at present being reviewedIn 2003 the exit charge was £50 and the deeds release fee £35

In February 2004 the way out fee went up to £100, and it further increased to £175 in June 2005Chelsea structure Society Thirlestaine Hall, Thirlestaine Road, Cheltenham, Gloucestershire, GL53 7ALIn 2003 there was an way out charge of £100 plus a deeds let go fee of £50 These were combined and rose to £180 in June 2004 and then £225 in January 2006Current borrowers will be charged the charge on their agreement when they signed up

preceding borrowers will be refunded the difference between the fee they salaried and the fee on their agreement, if they complainThe fee was £95 up plow June 2004 when it rose to £125, and then again up to £195 in February 2005The exit fee rose from £115 to £135 in May 2006, and the deeds release charge from £40 to £50 at the same timeGMAC-RFC Customer Service, Padiham Office, novelty House, Unit 12A, Mead Way, Padiham, Lancs bit12 7NGUp to March 2004 the charge was £75

The charge increased to £100 in April 2004, £115 in november 2004 and £150 in June 2005 In September 2005 the charge went to £175 A deeds release fee of £50 is owed on topHSBC does not charge either a redemption charge or a deeds release charge, so is not implicated in this issue at all

Till May 2005 there was no fee Then a fee of £90 was introduced, with a correspondence to all borrowers clearly announcing the fee'Nationwide has been asked like other lenders to give good reason for the fee,' it says 'We will make an statement in due course

'Mortgage Operations, Member Account armed forces, Nationwide, Kings Park Road, Moulton commons, Northampton NN3 6NWFrom January 2003 the fee was £175, rising to £195 in November that day and to £225 in imposing 2004 In December 2004 it rose again to £250Borrowers will only pay the charge originally mentioned on their accord That means previous borrowers who paid £250 may need a refund – which the store says it is prepared to disburse to claimants

Customer Services Director, Northern Rock PLC, Northern astound House, Gosforth, Newcastle, NE3 4PLBetween 2003 and 2006 the charge rose from £150 to £175 and then again to £199 But from February 1 2007, the fee has been cut to £145The new £145 charge will now apply to all borrowers The civilization says complaints will be handled on a 'case by case' basis

Up to September 2004 cost were £75 at RBS and £85 at NatWest In October 2004 these increased to £100 at both In February 2005 these rose to £225 for bothIn November 2004 the fee rose from £150 to £160, increasing again to £185 in April 2005

In February 2006 it rose again to £200, plus an extra performance release fee of £30The bank says it will only levy the fee originally detailed on clientele' agreements That income many previous customers should be given a refund without quibbleTill March 2004 the society charged £135, increasing to £165 in April 2004 and £225 in April 2005

Then in March 2006 the society introduced a new disciplinary twist: the exit fee was put at £200, plus a deeds let go fee of £100For both banks the fee was £75 up to April 2003 Then it rose to £125, and again to £195 in February 2006In 2003 the exit fee was £45 with a separate performance release fee of £55

In January 2004 these were joint and increased to £150, and in demonstration 2005 pushed up further to £199I now phoned the Woolwich and they overcharged me £35 (+£7 interest = £42)from the deeds admin charge in May 2001 It's being paid straight into my account Okay, it's not a great amount but it's a pair of nights out free

I'm now looking at my other mortgage accountsThank you, monetary Mail A 2 minute call to the Freephone number published on your website to The Woolwich enabled me to get a refund of £176 ( includes interest intended for the last Repayment Charge that I was charged when I repaid my mortgageCongratulations on your campaign

I have now called the Woolwich who are refunding £180 + interest Their devoted phone line was very helpful and I'm promised the refund straight into my account within 5 days No script letters necessary gratitude again

I just want to say a big THANKS I redeemed a mortgage with C&G in Dec 2004 and was charged £180 After reading the piece of writing on charges in the Daily letters and then on here I wrote to C&G using the pattern given I sent it off less than 2 weeks ago and today received a letter proverb a refund of £150 would be sent shortly

I at first took out the mortgage in 1990 so fees must have been much lower then huge campaignAll ex Cheltenham & Gloucester customers please note - the way out fee in 1997 was only £40 - I still have their original advertising leaflet My mortgage dates from April 1997

I'm leaving to complain, they have been unfair and unethicalI have now paid £19500 to redeem my Scottish Widows mortgage I become aware of they are not included in your list of lenders

Do you have any details as I am about to write to themThanks very much, I redeemed my mortgage with C&G in February 2005 and they charge £225 closing admin charge now sent off letter to ask for refund Here's hoping

Just rung Woolwich and they are distribution me £105 for excessive charges I still think they should be made to pay back anything over £35 Thanks for your advice© 2007 linked Northcliffe Digital Ltd Terms Privacy policy promote with us LoansCardsMortgagesInsuranceCompare the best deals around with This is cash

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