Mortgage fee of £3665.76p with Santander for leaving 2 months early!!!

[Wisette]

Hi All,

 

Hope that someone has been through this and has a way to get this fee overturn/reduced!!!

 

We are selling our property and to cancel our mortgage just 2 months prior to the end of the 2 year fixed term- our mortgage runs out on 2nd July 2013- with the consequence that we owe Santander a 3% fee of £3665.76p.

 

Our property has been for sale for a long time because of the current situation within housing market. Because of this we have had to sell the property for less than we thought and would have liked to. We have asked the buyers if they will wait on the completion date for the sale but they have not agreed

 

We have been very loyal customers to Santander for many years. Me and my wife both have our Current Accounts and Saving Accounts with them and have had our mortgage with A & L and then Santander since we have owned both this house and our previous property.

 

To try and get the fee waived we have contacted the local branch by phone who advised us to call the mortgage team. We contacted the mortgage advisor who confirmed that they are not able to do anything for us; only to defer our mortgage to next house which is not possible as we are moving abroad.

 

Next, we contacted our local branch mortgage advisor at Swindon Santander mortgage team, but there was also nothing he could do and we were told to email Santander Customer Services.

We contacted them in writing via email, and were told they can't reply to us via email as it’s is not secure and we were asked to phone the mortgage team instead.

 

We called the mortgage team who spoke to a supervisor, but there was still no-one willing to help, so we put in an official complaint which was opened there an then on the phone as well as closed directly on this call as they said it’s just for their records to help their future customer service, so pointless! They stated there was nothing more Santander could do.

 

Then we went into the local Santander Branch in Swindon town and spoke to the Manager who took all the details, advising us that there was a new rule in place regarding mortgage clients moving abroad- she was hopeful something could be done. However, she phoned back the next day and explained that she had spoken to the Regional Manager who confirmed there was nothing they could do and we would have to pay the fee.

 

Lastly, we contacted the financial-ombudsman, however the waiting list for help is currently 6 to 9

months and looking likely that this will be too late for us to do anything before the sale of the property.

 

We understand why the fees are in place to stop you leaving and getting a better rate with another lender, however we are forced to cancel the mortgage as we are leaving the country, so we are so disappointed Santander is not even considering any kind of help.

 

Please, if there is anyone that has a magic wond... HELP!!!

 

Mark

[Guest guest8040]

Our situation is completely different - we've ended renting our house and been stung by lots of unexpected fees, we've had to just bite the bullet and accept them. Were you on a fixed rate? If so I would guess that's where the fee originates from. Sounds like you've tried everything but just count your blessings you've sold your house would've my advice (not that that helps much). Good luck!

[jim and adel]

Break fees can be significantly higher than this and are one of the factors to consider when taking out a fixed rate mortgage. I don't see much grounds for complaint either to the company directly or to the ombudsman - that was the deal you struck. You mention it's a two year fixed term and also that the house has been on sale for a long time - those two things seem incompatible if you want to avoid such a charge (in other words, you don't take out a two year fixed rate mortgage if you're about to put the house up for sale, or you don't put the house up for sale after recently starting a two year fixed rate mortgage!)

 

I doubt that's what you want to hear, but that's how I see it. Good luck anyway!

 

Jim

[Misplaced]

That's exactly why we have never taken out another fixed term mortgage. We knew if we sold quickly there maybe a fee to pay but alas with the house not selling so quick we have just ended going on a higher rate and paying more each month.

 

I think you will just have to pay as Jim has already said you have entered into a contract. Look on the positive side it would have been more if you had sold quicker :-/

 

Good luck with the move and enjoy your new life.

[Guest Claire-n-tel]

Hi Wisette!

 

Just a thought, how much is your monthly payment? Would they let you carry on paying for the last 2 months and then close the account? It would be considerably less money?

 

Not sure if this is even possible but just a thought maybe worth asking?

 

claire

[Toni]

In Australia we have a Banking Ombudsman & Insurance Ombudsman etc for instances like this where you feel like you are being unfairly treated. I've used the Insurance one successfully in the past and had a decision overturned. Anything like that in the UK?

[Guest Claire-n-tel]

In Australia we have a Banking Ombudsman & Insurance Ombudsman etc for instances like this where you feel like you are being unfairly treated. I've used the Insurance one successfully in the past and had a decision overturned. Anything like that in the UK?

 

Yes Kris there is....

 

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

[Mr Technical]

You seem to be putting a lot of effort into getting out of paying this fee, did you put as much effort into reading and understanding the terms and conditions of the fixed term mortgage?

 

In my opinion, you can't have the best of both worlds - having the security of knowing your exact mortgage payments and at a reduced rate, but then when it doesn't suit your circumstances decide you want to alter that agreement.

 

People have to take responsbility for the decisions they make, good or bad....as the Aussies would say 'suck it up princess'!!!!

[xzibit]

You signed up to the mortgage agreeing that you will stay with them for a fixed period and if you decided to leave before this term was up, you would have to pay a fee.

 

I don't see that moving abroad is a reason to get out of it, in the nicest possible way, nobody is forcing you to move abroad.

 

These things should be taken into consideration if planning a move. I purposely planned that date of my move so that my mortgage was outside the fixed period and 2 other contracts I had were complete.

 

I don't see you getting out of paying it I'm afraid. The weather will make up for it when you get here though (from October).

[Lazy Cow]

Lol! Bet you wish you hadn't asked.

 

While I too am of the you made-your-bed-now-suck-it-up brigade, it is a huuuuge amount of money and totally sucks .

 

If Claire's brilliant suggestion of paying the two remaining months off up front doesn't work - and I'm guessing it won't as presumably the loan is secured on a house that will no longer be yours and it doesn't sound like they are planning on making it easy for you - then perhaps you'll just have to see it as paying back the money you saved by having the fixed-rate or whatever it is.

 

I hope someone helps you, as I said before, it is a lot of money to lose..

 

Good luck

[Toni]

You seem to be putting a lot of effort into getting out of paying this fee, did you put as much effort into reading and understanding the terms and conditions of the fixed term mortgage?

 

In my opinion, you can't have the best of both worlds - having the security of knowing your exact mortgage payments and at a reduced rate, but then when it doesn't suit your circumstances decide you want to alter that agreement.

 

People have to take responsbility for the decisions they make, good or bad....as the Aussies would say 'suck it up princess'!!!!

 

I am an aussie and I wouldn't say "suck it up princess". I think the OP has asked a reasonable question. If there is a legitimate way of not paying the fee, why would it hurt to ask. They can only say "no" and then they are no worse off. The Ombudsman would be able to tell them. Banks aren't always honest in their response to people so getting someone independent wouldn't hurt.

Edited April 13, 2013 by Toni

[Misplaced]

I am an aussie and I wouldn't say "suck it up princess". I think the OP has asked a reasonable question. If there is a legitimate way of not paying the fee, why would it hurt to ask. They can only say "no" and then they are no worse off. The Ombudsman would be able to tell them. Banks aren't always honest in their response to people so getting someone independent wouldn't hurt.

 

True banks are not very honest but in this instance it will have been in the contract between customer and bank that if they come out of the agreement early, a penalty fee will have to be paid.

 

It does seem unfair for just 2 months and quite a large amount but if that's what they signed up to......

[Toni]

True banks are not very honest but in this instance it will have been in the contract between customer and bank that if they come out of the agreement early, a penalty fee will have to be paid.

 

It does seem unfair for just 2 months and quite a large amount but if that's what they signed up to......

 

Yes I agree but wouldn't you just kick yourself if there was a legitimate way that you didn't have to pay for it and you didn't do your research. Banks over here have a bad reputation (probably in a lot of places). In New Zealand there is currently a class action against major banks for over charging on fees - who knows if it will be successful - (and it is a different scenario to this one I know) - http://www.theage.com.au/national/nz-class-action-targets-big-banks-unfair-fees-20130311-2fwfe.html

I suppose I am of the older age bracket and I think that someone is asking a genuine question and to say to someone to "suck it up" sounds a bit dismissive to me. As I said I am an Aussie and it isn't fair to generalise in that way - it makes Aussies sound like they are all dismissive and I think quite a number of us are not.

[Misplaced]

I'm an Aussie too Kris and usually I would say challenge all the way but I think in this instance they are asking for the good will of the bank as they have been long and loyal customers. Unfortunately, banks are a business and loyalty does not come into it from their point of view.

 

I think if they wanted to proceed then they should look at asking for a reduced amount to pay.

[Lazy Cow]

I think that someone is asking a genuine question and to say to someone to "suck it up" sounds a bit dismissive to me. As I said I am an Aussie and it isn't fair to generalise in that way - it makes Aussies sound like they are all dismissive and I think quite a number of us are not.

 

Well, I'm an Aussie too lol and I do use that expression AND I agree totally with Kris's first comment:notworthy: !

 

Why not ask the question? I am sure as that an organisation that wants money from you is not able / likely to give impartial advice. And who knows, there might have been someone on PiA who has been in the same situation. As they say, there's no such thing as a silly question !

 

Away from that, Kris, you're going to have to toughen up there Princess! I think if you look round the forum there are comments made that do not reflect well on poms and might even support that old 'whinging pom' label but I know that that isn't me or all poms (ex or current). Just let it slide and go with the flow.....

 

(Am I bad?)

 

LC

[Jessica Berry]

I have seen greeting cards in Adelaide with 'Toughen up princess', HTFU 'Harden the f*ck up' and 'Swallow some concrete and harden up' on ha ha, I don't think it is a dismissive comment, it is a tongue in cheek quip, in my experience within Aussie workplaces if you don't like the banter and people telling you straight you probably won't last very long over here!!

 

When we rented in Adelaide we renewed our lease for 12 months (this was the minimum they would accept) and after a couple of months found a house we wanted to buy. The terms and conditions of that rental agreement were if we left early we had to pay the rent until a new tenant was found and also I think (it was 5 years ago now) a percentage cost towards readvertising the property. I think we ended up paying the rental for about 6 or so weeks, plus our mortgage. It never crossed our mind to try and 'get out' of this agreement, WE agreed to the terms and conditions.

[Toni]

Well, I'm an Aussie too lol and I do use that expression AND I agree totally with Kris's first comment:notworthy: !

 

Why not ask the question? I am sure as that an organisation that wants money from you is not able / likely to give impartial advice. And who knows, there might have been someone on PiA who has been in the same situation. As they say, there's no such thing as a silly question !

 

Away from that, Kris, you're going to have to toughen up there Princess! I think if you look round the forum there are comments made that do not reflect well on poms and might even support that old 'whinging pom' label but I know that that isn't me or all poms (ex or current). Just let it slide and go with the flow.....

 

(Am I bad?)

 

LC

 

LC - You are very bad:biggrin: but I like you..... Anyway I don't think the forum should let things slide when something seems to be unjust against someone who is asking a general question and you seem to agree with that. When someone writes something you can't see their facial expression and whilst the terminology "Suck it up Princess" can be humorous (if you say it to someone face to face) when it is written it sounds like too much of a criticism.

[Toni]

The view that this kind of terminology is acceptable in the workplace is quite incorrect. Perhaps in a factory floor or a building site. In my workplace which is a fairly large employer (Government) if someone said "toughen up princess or suck it up princess" they would be in the manager's office so quickly they wouldn't know what hit them.

[Lazy Cow]

if you don't like the banter and people telling you straight you probably won't last very long over here!!

.

 

I agree with that but there's a difference between straight talking and just being rude.

 

The first I appreciate, the second? Nuhuh! No excuse for being rude and if someone is being obviously rude to me, don't then insult my intelligence by telling me it's banter or straight talking.

 

At that point my professionalism will kick in and I will cry...no, sorry, I mean if I can't sort it out myself I will (of course) go straight to my line manager for help. Same as I would in any country.

 

I think Kris is spot on, when someone asks for help or advice - particularly in a situation which could leave them open to personal criticism - comments like "suck it up" etc, without any emoticon or indication that the poster is being humorous, can just be negative or hurtful. And I think we're all nicer than that.

 

Personally, I think the best use of suck it up / toughen up or HTFU is on the soccer pitch

[Guest Claire-n-tel]

My rule of thumb is always......If i wouldn't say something to someone in "real life" i wouldn't say it on a forum

[Toni]

My rule of thumb is always......If i wouldn't say something to someone in "real life" i wouldn't say it on a forum

 

Yes that's true....but you got to watch that Lazy Cow......she is really bad.....bad to the bone....- she is Bad to the bone B-B-B-B-Bad.....-B-B-B-Bad.....B-B-B-B-Bad

I guess you get the drift......I need to have some more wine...... I think LC is right sometimes using an emoticon does tell people your mood....now I am going to be singing that tune in my head all night....double whammy

[Lazy Cow]

that Lazy Cow......she is really bad.....bad to the bone....- she is Bad to the bone B-B-B-B-Bad.....-B-B-B-Bad.....B-B-B-B-Bad I think LC is right

 

Why, thank you Kris

 

The kids (my own AND those at school) think I'm mean too.....

 

And I am

 

(it comes easily to me!)