~~~**IMPORTANT** Mortgage Claimants ~ PLEASE READ ~~

[bombardier]

HOW MANY PEOPLE HAVE BEEN SUCCESSFULL IN MOVING THERE MORTGAGE FROM ONE PROPERTY TO ANOTHER, THEREFOR AVOIDING HAVING TO PAY ERC ?

 

In my case, I had a mortgage with GE Money (First National at the time) and moved house, the product at that time was portable and I was able to move it with no ERC. Then, 2 and a half years later I moved again, this time they claimed that they had changed their policies and the mortgage was no longer portable and charged me nearly 5k in ERC.

[larry12]

In my case, I had a mortgage with GE Money (First National at the time) and moved house, the product at that time was portable and I was able to move it with no ERC. Then, 2 and a half years later I moved again, this time they claimed that they had changed their policies and the mortgage was no longer portable and charged me nearly 5k in ERC.

How can they change there term of bussiness without your agreement a deal is a deal and i belive you should win that one

I am sure the main guys who run this site are looking at this,

[gizmo111]

In my case, I had a mortgage with GE Money (First National at the time) and moved house, the product at that time was portable and I was able to move it with no ERC. Then, 2 and a half years later I moved again, this time they claimed that they had changed their policies and the mortgage was no longer portable and charged me nearly 5k in ERC.

 

How long was the tie in for?

[bombardier]

How long was the tie in for?

I haven't got the paperwork in front of me at the moment so I don't know the exact dates etc but I was in the last year of a 5 year fixed rate, the 5k was 6 months interest.

[gizmo111]

I haven't got the paperwork in front of me at the moment so I don't know the exact dates etc but I was in the last year of a 5 year fixed rate, the 5k was 6 months interest.

 

When you have the paperwork come back and let us know - did it say anything about only being able to once in 5 years in contract?

[iconoclash]

Been reading through this interesting thread as I have recently changed lender and paid £11,900 for the privelidge! these were penalties for redeeming early and extra costs were described as sundries! I note that some lenders will offer a new product to existing customers and 'waive' these fees, thus, they can surely be argued as not having been set in stone or representing true costs? Over ten years and several lenders I have lost/paid 25/30k in fees with different products! Was once advised to look at the brokers involved on the basis of 'disclosure' - I was not aware that I had a 6% penalty for six full years! with a reducing discount period one expects the penalty to reduce accordingly?? Referring back a bit, I had a boundary dispute with a neighbour 5/6 yrs ago, unfortunately my neighbour was a 100 listed brewery and came out all guns firing! - however, I settled out of court with them and won my claims re land and cost BUT did have a legal costs draughtsman, which I found through a legal web site - so they do work for us direct. good luck....

[iconoclash]

In my case, I had a mortgage with GE Money (First National at the time) and moved house, the product at that time was portable and I was able to move it with no ERC. Then, 2 and a half years later I moved again, this time they claimed that they had changed their policies and the mortgage was no longer portable and charged me nearly 5k in ERC.

My mortgage was sold to another company twice - BUT - all the terms originally signed up to had to remain the same, therefore your GE money guys cannot change the terms either, I'm no expert but this sounds wrong to me and I would get that back! good luck

[gizmo111]

I note that some lenders will offer a new product to existing customers and 'waive' these fees, thus, they can surely be argued as not having been set in stone or representing true costs?

 

They can waive fees/ERC's as a gesture of goodwill should they wish. They don't ave to represent the lenders costs, they are a fee for exercising a right under contract and not a penalty for breach of contract - this has been found 3 times in court, where claimants have lost huge amounts of money in charges, I am not saying this is fair or just but the way the situation is at present.

[Bona]

Gizmo

 

How can they warrent an ecr if they force you to remortgage as they have apossession order over you

[gizmo111]

Gizmo

 

How can they warrent an ecr if they force you to remortgage as they have apossession order over you

 

A bit more tricky that one - as you have obviously breached - but problem here would be the indemnity for legal costs. THis a bit beyond what I am actually sure of - have you asked zoot?

[Bona]

costs arnt a problem as I have an order for their costs to be assessed yes I posted it to zoot no reply as yet under the repossession case I can go back to court to have the mortgage companys costs assessed but at the moment we have asked them if the wont agree then I will have to do a |SAR for charges I just feel that with the erc they cant enforce it if they insit on a possession order

[gizmo111]

costs arnt a problem as I have an order for their costs to be assessed

 

But there will still be something to pay, are you claiming ERC already? or just charges?

I would wait for zoot Bona as I really am not sure here.

[kennyh]

Do any of the contracts under discussion have clauses in, which dwell on the subject of avoiding an ERC by leaving a small(ish) balance on termination (repayment of capital)? One, I've just returned an AQ on, has such a clause (didn't know it before) and given the relatively marginal balance 'they' are prepared to accept without raising an ERC there appears to be no relationship twixt paying 99% of a mortgage off (with no ERC) and paying 100% off with, often, massive ERC. This surely indicates an inconsistency in 'their' presentation of liquidated losses.

I KNOW this isn't directly related to matters under discussion but I do believe it worthy of investigation and might well present many of us with an opportunity to exploit a possible weakness in a contract. I don't know how to set up a link but the "Terms & Conditions" thread shows, more fully, wot I'm rabbitin' on about.

[Delboy01]

Having read thro this advice. I am now only going to claim penalty charges from GMAC,,, Can I have a quick yes or no from a few of you that this is still a relatively successful avenue to go down?

 

I know they arnt a bank but they still landed me with penalty charges

 

Many Thanks

 

DELBOY

[zootscoot]

There have been severl successes from Gmac for late payment fees and charges. Including one just last week. Thay have been paying out in full and not using the legal indemnity fee.

 

They will however, try every delaying tactic in the book and may try to threaten to multi -track. They generally pay out a few days before court.

 

Best of luck

 

Zoot

[Delboy01]

Thanks Zootscoot and the problems with going multi-track are???

 

 

And legal indemnity fee???

 

DELBOY

[zootscoot]

If the case is multi- tracked (its very unlikely the courts would allow it) the case will be heard in the High court in London or one of the mercantile courts. This means only barristers can be used and costs are unlimited.

 

See Sandy's thread here:

 

http://www.consumeractiongroup.co.uk/forum/other-institutions-successes/7223-sandy-gmac-rfc.htm

 

The legal indemnity clause is a clause in the mortgage agreement which states you will pay their legal costs involved in any matter arising from the mortgage agreement.

 

Gmac have threatened to use it but have backed down and paid out in full

 

See Donelly's thread here:

 

http://www.consumeractiongroup.co.uk/forum/other-institutions-successes/32915-these-guys-gmac-don.html

[maguire1980]

Hi there,

 

Must be having a blonde moment as all this is confusing me today!! I have written a letter to Preferred Mortgages about £700 of bounced dd charges and they gave me the usual fob off letter. Is reclaiming these penalty charges against mortgage companies still recommended?

 

Thanks

[zootscoot]

Hi Maguire,

 

As your claim is in the small claims court the risks are less. Some companies have sought to use the legal indemnity clauses in the contract to recover their legal costs in defending a claim, although as of yet these have not been enforced in small claims.

 

Best of luck

 

Zoot

[danmarton]

I am confused

Are we now advised not to make a claim against mortgage companies?

My redempton statement is as follows, is there anything on there I can claim back?

 

The redemption statement is made up as follows

 

Interest £3739.29

 

Administration Fees £3514.11 (Sent me 2 redemption statements, on one it is classed as Administration fees, on the other it is called product related charge) either way it is the early redemption charge.

 

Deeds Handling Charge £99.00 (What did they do here, take a look and put it back, because its the same bank!)

 

Booking Fee £199.00

 

plus on top of that I have several charges of £32 for unpaid DD

 

So do I just forget about it or is there something on there I can claim?

Thanks in advance for any replys

[larry12]

I am in the process of claiming back the fees i had one this morning from Mortgage Trust £50 for non payment of D/D

Can i claim these charges back?

I also want to look at ERC but what is the latest advise?

[larry12]

I have had a cheque from Natwest mortgages for £140 to day a refund of the Exit fee (quoted £85 charges £225) but in another one with natwest the same letter explaining we were quoted £85 but this time that are offering to refund me £15 i have rejected this by letter to day i will let you know what happens

[sharpgun]

hi anyone had a mortgage with gmac a couple of years ago sent for statment only to £300 worth of charges but also found £3900 erc is it worth pursueing

[Guest DEATHLORD]

Hi Zoot oh Godly one( )

 

I have been reading these for some while now and for the life of me can not see why the ERC is right, on one hand they are saying it is a charge in the contract but when you ask what is the charge for as they have to do some thing for a charge yes? and then being told its a charge for breach of the terms, then why if you have to remortgage or repay the mortgage becuase of say a possision order then what do you do.

I think this becuase of the actions of the bave few needs really to be looked into for the rest of us.

Can you asnwer the following then, what can we claim and WIN against these companies who know the risks they take when they offer these mortgages at higher rates

any help would be greatful.

[progenic7]

Hi all,

 

i have read this thread with great interest and although it does not directly apply to me, i am concerned for my fellow CAG members.

I feel that what Zoot said is very pertinent and everyone should take heed asap.

clearly there is a very big difference between a bank penalty charge and an early redemption charge.

The banks have not got a leg to stand on with the penalty fees on current account as clearly their liquidated losses are hardly anything (if anything at all) and they know in court a judge would see them as being penal, and therefore a classic penalty clause issue.

an early redemption charge however is a totally different kettle of fish, as the mortgage companies can and easily will if needed, prove their losses sustained by the simple fact a person has backed out early.

A judge is quite likely to see these losses sustained as reasonable, especially as they can be justified by them as a financial body and credit giver, after all thats their business and how they make money.

Im not in any way supporting them, im saying be careful be i wouldnt want to see anybody in deep water, and i mean in deep deep water

 

I would also recommend anybody in the position to be able, they close the claim and retreat gracefully back.

If you cant do this then i strongly suggest you try and come to an agreement out of court asap.

 

best of luck everyone

 

Johnny