Vulture fund wants to charge €4k mortgage redemption fee

Discussion in 'Mortgages and buying and selling homes' started by Thirsty, Feb 23, 2017.

  1. Thirsty

    Thirsty Frequent Poster

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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?
     
  2. elcato

    elcato Moderator

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    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 ;)
     
  3. Monbretia

    Monbretia Frequent Poster

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    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.
     
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  4. Thirsty

    Thirsty Frequent Poster

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    Thanks folks.

    So the €4k being looked for by vulture fund is totally out of order in that case!
     
  5. lukas888

    lukas888 Frequent Poster

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    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
     
  6. Thirsty

    Thirsty Frequent Poster

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    Other than the bank name, yes your summary is pretty much on point.
     
  7. Monbretia

    Monbretia Frequent Poster

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    Is it on a variable or fixed rate?
     
  8. Thirsty

    Thirsty Frequent Poster

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    Variable; but why would that make any difference?

    The redemption figure and this additional charge are clearly laid out as separate items.
     
  9. tallpaul

    tallpaul Frequent Poster

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    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.
     
  10. Bronte

    Bronte Frequent Poster

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    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.
     
  11. Thirsty

    Thirsty Frequent Poster

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    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.
     
  12. Thirsty

    Thirsty Frequent Poster

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    Sorry think its best for now not to put to much info out there
     
  13. Thirsty

    Thirsty Frequent Poster

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    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.
     
  14. Brendan Burgess

    Brendan Burgess Founder

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    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
     
  15. MrEarl

    MrEarl Frequent Poster

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    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 ?
     
  16. Thirsty

    Thirsty Frequent Poster

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    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.