Vulture fund wants to charge €4k mortgage redemption fee

Thirsty

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If I redeem (via a lump sum) mortgage held by ABC Bank, are they entitled to expect any additional legal or administration fees in addition to the full redemption figure?

And if they are so entitled, what would be a usual charge?
 
I got a letter from AIB on this recently and they are charging a 60 euro fee for redemption. Not sure what they actually called it but it's there all the same. As it's quite small I doubt it's a legal fee ;)
 
Back in the day when I was working in banking there was a 'vacate fee' for the deeds when a mortgage was redeemed, it was originally 50 quid and that went to €63.50 with changeover to euro. That was the only fee on the redemption of a variable rate mortgage at that time anyway.
 
Thanks folks.

So the €4k being looked for by vulture fund is totally out of order in that case!
 
Can I take it that ACC sold your performing loan to a vulture fund.You are now redeeming said loan for full amount outstanding.If that's the case then yes 4k to redeem is outrageous
 
Variable; but why would that make any difference?

The redemption figure and this additional charge are clearly laid out as separate items.
 
Why don't you pay a lump sum off your mortgage leaving, say, two or three normal monthly payments left. Then let the mortgage loan complete as per normal?? 4K is a disgrace and should be reported to the Financial Ombudsman. Ulster Bank charge €38 as a redemption fee.
 
Before you go to the FSO ask the Vulture fund on what legal basis are they charging you the 4K.


Vacate Fees

In relation to Vacate fees, used to be about 50 IEP. But Ulster bank no longer charge it as there is a new procedure as far as I understand it, meaning no need for the vacate fee. Vacate fee was a charge for getting the name of your bank off your mortgage title when the mortgage had ended.

Early redemption

This is when you decide to pay off your mortgage earlier, or sell a property. Your bank gives you the redemption figure to be paid. Never heard of a charge for this until today. Maybe a small admin charge but nothing like even 1K never mind 4K.
 
Agreed.

They were asked and I was told 3k legal fees plus VAT but they were prepared to accept 4k

Letter of complaint being written to VF now and if no joy am off to the FSO.
 
It's been a while, but I can now update.

When challenged this additional fee of 4k was withdrawn.

Chancers is the word that comes to mind.
 
Hi Thirsty

That is very interesting.

There was do settlement at a discount.
It was not a fixed rate mortgage.

Did they have any justification?
Did you have to go to the FSO?

I would be worried that others may just pay it, without realising that it's not right.

Brendan
 
Hello Thirsty,

Forgive me if I have missed this in the posts above, but was this your Homeloan or some other form of property loan that did not relate to your principal private residence ?
 
Didn't need to go to FSO on the additional fee issue.

(Though there is still a complaint being drafted).

I flatly refused and told them I was quite prepared to see them in court; at which point they backed down.
 
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