Mortgage Discharge Fees

when i took mine out - there wasn't a charge at all (got charged 299) - i called them about this and said exactly that "whats to stop you charging a million?" - i think it's illegal on the basis that they cant change the contract without both parties agreeing - and i never did

I think you'll find they can. Otherwise they couldn't increase the interest rate either. The trick is that if they put up the interest rate (or change any of the other terms to your disadvantage) they basically give you the option of either tacitly agreeing, or redeeming your loan more or less straight away under the old terms.

Typically they can vary the terms by notifying you. However they would need to prove that you were notified. When my mortgage with the Halifax ended they pointed me to their "simplified" charge structure which outlined the fee. I told them I didn't mind paying if they had notified me in advance. They claim they did - I claimed they didn't. I keep good records and couldn't find the price list.

I asked them to tell me what date or mailing they notified me - they couldn't and I told them once again to prove they had even sent the price list. They couldn't even tell me the month let alone date and they waived the increased charge.

I am just waiting for companies to start charging you to raise a complaint with their compliance teams.

they can't - and in fact you go on to describe how a change of conditions is agreed

that what should happen - but it hasn't happened in the case of redemption fees

good for you - i think i will certainly persue my case

That's what premium rate numbers are for.

"Gareth" wrote

You could complain by post. Or do they have "premium rate stamps"? :-(

Hasn't it? Don't they send you a little leaflet every now and then with an updtae of their terms?

it has to be more than a little leaflet - a change in conditions (just like a work contract) need be agreed in writing (i have to sign to acknowledge it) - i did ask them for this notice and got some story - in view of Gareths success i am going to persue it - it's most certainly illegal if not unethical

That is certainly not the case for an employment contract where simply working under the new conditions without objection can be taken to mean implicit agreement.

- i did ask them for this notice and got some story - in view of Gareths

In message , JethroUK© writes

Unlikely. Somewhere in the original agreement there will be a bit which say 'we may change things from time to time'.

Its definitely unethical.

But in this case you would be aware of the new conditions.

You generally don't notice a change in redemption fees until you decide to redeem your mortgage.

I agree that if you haven't been informed there is an issue, but if you have, even if it is buried away in some literature which you are unlikely to read then It seems to me that any legal responsibility the lender has has probably been met.

isnt the difference here that if they say 'the interest rate is going to rise' you have the option of going elsewhere, whereas if they say 'the redemption rate is now going to be 1Million" you dont because you'd still have to pay 1million? So they not only have to tell you but give you adequate notice so you arent subject to the new rate if you dont like it? Otherwise its meaningless.

So maybe if they said 'in x months the redemption rate will increase to

I don't know about other people, but any time my mortgage terms (or indeed any banking terms or terms for almost any service e.g. electricity) change I am always informed some time in advance.

I'm also with the Halifax, every year they have sent me a list of charges along with the mortgage statement.

Interesting to know whether they can still get away with these charges since the ruling about unfair penalty charges on credit and current accounts. The charges are supposedly illegal if the penalty exceeds the actual cost.