Mortgage 'redemption' fees

[IanF]

Was interested to hear in today's media that these charges are now becoming so outrageous that industry commentators are flagging it up. Seems the banks are all trying to get us to pay these ridiculous charges because they can't make a profit lending money on mortgages - apparently the interest rates are being made more competitive and they want to recoup their profits from the exit fees....

Seems the blackguards have decided to start hiking these fees by around 50-100% over the past couple of years (funny how they ALL seem to be doing it at around the SAME time...hmmmm) - well I'm sure it's a competitive market (NOT) in this area. I think the FSA might have a look into them for collusion on that one.

 

Of course, the most disgusting aspect is, that I, like a sensible soul (), took out a repayment mortgag with A&L ( ) when they happened to still be a Building Soc in 1986...and of course had to pay the dreaded Mortgage Indemnity Guarantee (MIG) because it was over 75% of equity, so Eagle Star robbed me of my hard-earned back then for that (OK, I knew about that.) But now, the friendly so&sos think they're going to charge me £295 :twisted: for the privilege of redeeming my mortgage - AN ASTRONOMICAL FEE THAT I NEVER SIGNED UP TO AS PART OF MY CONTRACT, and which certainly does not reflect the costs involved (possible case for court action on excessive charging?) . So :idea: I am going to pay the mortgage down to 1p and see how they like that.

[gothicf0rm]

you can use the previous rulings from the OFT to work out just what is a fair level of redemption fee and then see if youre being stung or not.

[natalie1191]

Why only £295, I recently left one lender when I moved house and got stung with £6600 early repayment penalty. I knew when I signed but ignored as I thought I wouldn't want to move home but things changed and after 1 year we moved. Now with all that is going on I feel ripped off as they stole £6600 out of my profit for the house which put up my borrowing on the new house obviously. Am I right to feel this way or are they right to demand these fees?

[gizmo111]

Have a read here before you go any further http://www.consumeractiongroup.co.uk/forum/mortgage-companies/62003-important-mortgage-claimants-please.html

 

Mortgage redemption fees and exit fees are 2 entirely different charges.

[r11skg]

I,m with Souther Pacific and have been asked to trump up £10200 I would be interested to here if there is a way of avoiding these charges

[Bona]

It doesnt seem so at the moment but I'm sure it will come theres a lot going on in that area and if you have to pay it well you have six years to get it back when it is sorted

[martin2006]

Southern Pacific will not let you redeem the mortgage on any other terms. I should know i have a case ongoing against them at the moment regarding ERC's. You will have to stump it up and hope you can claim it back in court.

 

Can someone in the legal knowhow confirm that precedents cannot be set in the county court?

 

Martin

[zootscoot]

Can someone in the legal knowhow confirm that precedents cannot be set in the county court?

 

 

That is correct. Precedents can only be made in the ECJ, House of Lords, Court of Appeal, the Divisional Courts of the High Court.

 

All other courts have no law making powers.

[martin2006]

Thanks Zoot

[IanF]

This topic was closed on 03/05/19.

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