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Reclaim £225 if you have recently switched or repaid your mortgage
Reclaim £225 if you have recently switched or repaid your mortgage

Reclaim £225 if you have recently switched or repaid your mortgage

Not sure if this is in the right section or if it has already been posted, I could not find it here? Mods please move to wherever it should be.

Applies to most mortgage lenders not just Abbey. If you have switched or repaid your mortgage in the past 5 years you have probably been overcharged & can now claim that back. Just phone the lender & ask, some will sort on the phone, others (including Abbey) ask you to complete a simple form. Just google MEAF "mortgage exit administration fee" for more details.

Amount you may have been overcharged varies from one lender to another, but well worth the cost of a local call if you get a couple of 100 quid back.

includes but not limited to the following:
A&L = £295
Woolwich = £275
B&B = £235
C&G = £225
Halifax = £225

I was told about this by a mate at one of the banks then found full details on MSE (have not linked to it as I do not know if you allow links to "rival" deal sites )

38 Comments

You need to be careful posting things like this.

It's true that SOME customers who have swicthed or repaid mortgages may have been charged more to redeem the mortgage than they were first lead to beleive when they took out the mortgage.

HOWEVER, this does not apply to everyone by any stretch of the imagination and the figures you're quoting are simply not accurate.

The FSA made a statement in February 2007 regarding this (called a Mortgage Exit Administration Fee or MEAF). You are only entitled to a refund of the DIFFERENCE between what you your original contract stated and what you actually paid and then only if the lender can justify (to the FSA, not to you) that the additional cost is valid.

I appeared on one of Martin Lewis' TC shows about this in June/July last year and then got into a protracted battle with Mortgage Express to recover money. I ended up getting the associated interest from them too but not withourt a fight.

This is not like bank charges - the FSA has made a ruling and the lenders should be sticking to it. It don't mean, however, that they'll all stick to it ane be gracious about it.

We have just been successful with a claim with Abbey. Oddfellow is correct that "You are only entitled to a refund of the DIFFERENCE between what your original contract stated and what you actually paid"

We were charged £225 to switch lender. Our original contract stated a £99 charge. Hence we received back £126. :thumbsup:

Original Poster

Oddfellow;1514303

You are only entitled to a refund of the DIFFERENCE between what you your … You are only entitled to a refund of the DIFFERENCE between what you your original contract stated and what you actually paid and then only if the lender can justify (to the FSA, not to you) that the additional cost is valid.



Not entirely true as "under UK contract law, you can't fine someone for breaking a contract, you can only charge them an amount proportionate to the cost of the breach. The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work." [MSE quote]

Even if you only get back the difference as tengis19 £100+ for the cost of a call is still good

Banned

I called my old one (A&L) and they refunded £55. Worth a try as it only took 2 minutes on the phone

My contract stated £95 but I was charged £150. This was 6 years ago but they still paid up.

This is really only any good if you have had a mortgage with a provider for about five/ten years and recently changed.

I just called Abbey and inquired. I had a mortgage with them for 2 years and just changed in December. I was charged £225 for my MEAF but that is what my contract said 2 years ago. So no extra money for me. :-(

Looks like this might be worth a quick phone call. We changed from Abbey about 5 years ago having been with them for 10 year previously. I won't get anything unless I call. Thanks for the heads up!

sneaky one - my mortgage I had for a long time and switched it last August to a new lender and was charged £225, thought I would have been due the refund, but just rang and becasue I changed the mortgage rate slightly in 2006 to a better more competitive rate they say my T&Cs were changed then to state the £225 fee applied !!

Very sneaky, they didn't happen to point that out to me, no doubt it was in the small print.
But surely everyone changes deals / rates within the same lender through time if they stay with that lender, would everyones or most customers T&Cs not have changed by now???

I did this early last year and got a £25 refund from the year or so before!

The jackal - We only had our mortgage with Abbey for 2 years. I think it just on what you original documents state. :thinking:

I could have posted this.

Abbey was my lender and got charged the full whack for paying it off but thanks to (another site) claimed back exactly £225.00
Thanks for nothing Abbey.

Definitely worth highlighting this again to folk.

I claimed back £177.90 from C & G in March 2007. Cant remember where it was highlighted but, a simple letter meant the bank had to repay.

Quote from C & G letter

This amount was calculated based on the difference between the closing administration fee quoted on your mortgage documents when you signed your most recent contract, £50, and the total closing administration fee you paid of £225. We have included interest of £2.90 based on the Bank of England base rate plus 1% from the day your mortgage account closed.

I still cannot figure out why folk have got to ring up to get these refunds. You would have thought the regulator would force them to repay automatically.

ant eg;1514386

Not entirely true as "under UK contract law, you can't fine someone for … Not entirely true as "under UK contract law, you can't fine someone for breaking a contract, you can only charge them an amount proportionate to the cost of the breach. The actual administration cost to a mortgage lender of closing down a mortgage isn't thought to be much more than £50 so it's arguable that you needn't pay more than £50, regardless of what your contract says. Therefore writing to your lender, asking it to justify the charges with a full breakdown, and if it refuses asking for a full refund, can work." [MSE quote]Even if you only get back the difference as tengis19 £100+ for the cost of a call is still good



You are technically correct. However, ending a mortgage by repaying it (however you do so) is NOT breaking a contract. The terms of most (if not all) mortgages allow for early settlement - if they didn't nobody would be able to sell their house......

The issue here is that the FSA told lenders (in Jan 2007, not Feb as I prevoulsy stated) that they must refund the difference if there had been an increase in the MEAF during the term of the mortgage, but crucially, ONLY IF THE BORROWER COMPLAINED.

You can read more about it here ]http//ww…tml

rizla01;1515187

edit...... Thanks for nothing Abbey.



If you haven't worked it out yet, no bank is out there to help you. They're all out there to earn money from you and they will get it however they can, including unlawful methods such as profitering from overdraft charges (see my own story on this at: ]http//ww…uk/

Does any of this apply if you have changed the mortgage product but stuck with the original lender? Scarborough in this case.

dbt101;1515340

Does any of this apply if you have changed the mortgage product but stuck … Does any of this apply if you have changed the mortgage product but stuck with the original lender? Scarborough in this case.



No. The MEAF is stands for Mortgage Exit Administration Fee. It's only applied if you end the mortgage.

dbt101;1515340

Does any of this apply if you have changed the mortgage product but stuck … Does any of this apply if you have changed the mortgage product but stuck with the original lender? Scarborough in this case.



if you check my post above that's what happened me, I had an abbey mortgage for more than 10 years, the rate I was on got progressively more un-competitive so I rang them and they put me on a new variable rate in late 2006.

I than moved lenders midway through 2007 and they charged me £225 and they now claim that the T&Cs attached to my 2006 'rate' change stated a £225 MEAF. I feel that's a total rip off, I wasn't told that their change in T&Cs would have cost me money in the end especially considering a only stayed with them a short time after. I feel I was 'mis-sold' that rate change, with all the info no doubt buried in the small print.

So to answer your question, it looks like it is related to the T&Cs that existed when you move to your latest product under the same lender.

gforce67;1515486

I than moved lenders midway through 2007 and they charged me £225 and … I than moved lenders midway through 2007 and they charged me £225 and they now claim that the T&Cs attached to my 2006 'rate' change stated a £225 MEAF. I feel that's a total rip off, I wasn't told that their change in T&Cs would have cost me money in the end especially considering a only stayed with them a short time after. I feel I was 'mis-sold' that rate change, with all the info no doubt buried in the small print.


Its not in small print, it's actually in the KFI document sent out when you apply for the new rate and is clearly stated in the middle of the paperwork under where it says "Fee's you must pay" or something very similarly worded. Its a pain in the ass but unfortunately it's there.

Thanks for that advice guys, looks like I have missed out here!

This is something I should look at, I've re mortgaged several times, where all my old paperwork is though is another thing.

tigers66;1515711

This is something I should look at, I've re mortgaged several times, … This is something I should look at, I've re mortgaged several times, where all my old paperwork is though is another thing.



The lender is legally bound to keep your old papers for a number of years. A phone call to them (or maybe a letter will be requested) and you should be able to get the information on 1) what the original MEAF was and 2) what you actually paid.

Cheers Oddfellow, I wish I could do this with redemption fees, especialy on the mortgaes which were not special deals in any way, no fixed rates or cashbacks.

We remortgaged with C&G (same lender for many years) and they refunded....just a quick phone call!

This came up on MSE last year, I paid my mortgage off in 2003 (Halifax), I got £35 back, not a fortune but it was my money.

this is worth checking out, have some heat OP. my question is we paid our mortgage off with birmingham midshires in september after being on fixed rate for 5 years and are now in rented waiting for something to happen with the housing market.

so its a simple as phoning them and asking what the MEAF was when i signed the mortage compared to what i paid when i paid it off? how do i know i dont get fobbed off on the phone though.

tigers66;1515810

Cheers Oddfellow, I wish I could do this with redemption fees, especialy … Cheers Oddfellow, I wish I could do this with redemption fees, especialy on the mortgaes which were not special deals in any way, no fixed rates or cashbacks.




You might well be able to... I worked for a mortgage company and dealt with numerous cases regarding redemption fees. The customers that took out a really low rate then right at the end of that rate paid the early redemption fee to go on to another product generally didn't get anything back.

However, there were cases where customers had taken a fixed rate and then seen interest rates drop, sat on the standard variable rate for a few years and then paid an early redemption fee to take out a better product. With cases like that, you can actually write to your lender and ask them for a profit and loss account on your mortgage and if it shows that the bank has made a reasonable amount of profit from you (or a very large amount !), then they would give all or part of the charge back, depending on the profit they'd made. Reason for this was they couldn't argue that 'we have to charge you this fee to cover the loss we incurr when offering you the special rate in whatever year' I've seen customers take cases like that to the Ombudsman and actually win as the bank had no justification for charging amounts in the thousands, so it might be worth a go :thumbsup: Oh, this doesn't apply to any admin fee for the rate by the way, just the early redemption fee

Psychobunni;1515578

Its not in small print, it's actually in the KFI document sent out when … Its not in small print, it's actually in the KFI document sent out when you apply for the new rate and is clearly stated in the middle of the paperwork under where it says "Fee's you must pay" or something very similarly worded. Its a pain in the ass but unfortunately it's there.



Yeh, but could this not be classed as mis-selling if they don't specifically point out that this fee has increased and changed significantly from the previous contract.

gforce67;1516379

Yeh, but could this not be classed as mis-selling if they don't … Yeh, but could this not be classed as mis-selling if they don't specifically point out that this fee has increased and changed significantly from the previous contract.



It's not miss-selling if the fee rises during the duration of the contract. You're advised of a fee at the outset and if you read the small print, there is a clause that basically says they can revise the fees as and when they see fit. The FSA stepped in becuase there was sufficient argument that could not support the expotential rises in the fees that many lenders were making and the FSA concluded that (not in as many words) that the lenders were further penalising customers who wanted to take their business elsewhere. Naturally this was under the ruse of "increased costs at the point of redemption" or similar balls***.

Charlie&Lola;1516245

You might well be able to... I worked for a mortgage company and dealt … You might well be able to... I worked for a mortgage company and dealt with numerous cases regarding redemption fees. The customers that took out a really low rate then right at the end of that rate paid the early redemption fee to go on to another product generally didn't get anything back. However, there were cases where customers had taken a fixed rate and then seen interest rates drop, sat on the standard variable rate for a few years and then paid an early redemption fee to take out a better product. With cases like that, you can actually write to your lender and ask them for a profit and loss account on your mortgage and if it shows that the bank has made a reasonable amount of profit from you (or a very large amount !), then they would give all or part of the charge back, depending on the profit they'd made. Reason for this was they couldn't argue that 'we have to charge you this fee to cover the loss we incurr when offering you the special rate in whatever year' I've seen customers take cases like that to the Ombudsman and actually win as the bank had no justification for charging amounts in the thousands, so it might be worth a go :thumbsup: Oh, this doesn't apply to any admin fee for the rate by the way, just the early redemption fee




This I am interested in. Effectively, these are contractual terms, willingly entered into (yes, I know, so are bank charges). However, I see the logic in this and, in a way, it's very similar to profiting from bank charges. I'm a property investor and we redeem mortgages all the time, shifting to better deals and so on, maybe there's some scope here. Anyone else got any such stories?

Oddfellow;1516524

This I am interested in. Effectively, these are contractual terms, … This I am interested in. Effectively, these are contractual terms, willingly entered into (yes, I know, so are bank charges). However, I see the logic in this and, in a way, it's very similar to profiting from bank charges. I'm a property investor and we redeem mortgages all the time, shifting to better deals and so on, maybe there's some scope here. Anyone else got any such stories?




It's pretty much along the same lines as the bank charges but was happening a lot earlier. It's been happening for at least 7 years, and that's before the FSA started looking at things from a being fair to the customer point of view. The reason the cases were advertised as few and far between (if advertised at all) was because for obvious reasons, it's not something that the banks publicise as with each individual case costing probably an average of £2k, imagine the loss they'd incur if it became common practice. They may well have recently started lowering the actual redemption fees that are placed on accounts but I can't see why people that have had to pay the big ones in the pass can't request a profit and loss. The bank is obliged to do it and the head of mortgage department used to just back down on some of them without going to the Ombudsman when he saw the profit and loss. Yes, they try and fob you off with 'well you read and signed it' but from my experiences, that doesn't count for anything if they've overcharged you and the head of department knew it :thumbsup:

I contacted Abbey about a mortgage I had with them from 2004 to 2006. They are sending me out a form to put in an application for repayment. I asked was I likely to get any money. They said as long as I hadn't changed any details after March 2005, I was likely to get the difference from £225 (charged) and £99 (originally contracted). Fingers crossed! Heat and rep to ant eg

hi, phoned halifax today and £100 is on it's way to me and it only took a five minute phone call, got to be worth looking into guys :thumbsup:

We had £126 back from Abbey - not bad for a 2 minute phone call.

(Voted hot)

Just called Abbey, they are sending out a claim form. The person I talked to had the cheek to ask me if I was interested in a home insurance quote, like I'm going to even consider it even though Abbey ripped me off when I switched to NR.
Thanks OP

Just spoke to Birmingham midshires about a mortgage we came out of last year with them, they filled out a form while i was on the phone and will get back to me Fingers Crossed!!
Cheers for the info

Just called Abbey and they are sending out a form. This is because I have changed address since I changed mortgage with them. I hope it's not too difficult to fill in! God knows what my old mortgage account number was!!!

Just contacted A&L cheque on it's way for £100.00 plus interest. Well worth 10 mins digging through old paperwork and a 2 min phone call. I do think it is unfair that the mortgage lenders don't have to do anything until you ask for your money back. So many people are probably unaware of this. Good job there are sites like this to redress the balance, will be telling my mates to check theirs.:thumbsup:

Hi Guys,

Does anyone know if this only applies to Mortgages with Banks? I had a Mortgage with Northern Rock and moved it to Natwest.

Thanks in advance

How does the repaid mortgage being done?? Is it also applicable on reverse mortgage loans?
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