Over 30,000 mortgage borrowers to be refunded fees

Mortgages and Home

Updated on 17 February 2014 | 0 Comments

More than 30,000 Yorkshire Building Society Group mortgage borrowers will be refunded all administration fees for mortgage arrears.

Yorkshire Building Society Group is to refund all administration fees for mortgage arrears dating back to January 2009, after an investigation by the Financial Conduct Authority (FCA) discovered they may have been charged incorrectly.

Just shy of 34,000 current and former mortgage borrowers who fell behind on their payments will receive an average of £247 back in refunded fees, taking the total bill to £8.4 million. They will be refunded the fees plus interest.

The Yorkshire group includes Yorkshire, Chelsea and Barnsley building societies, and Accord Mortgages.

Lenders can only charge administration fees when a mortgage account falls into arrears by two months or more, but it seems some borrowers were charged fees incorrectly.

However, all mortgage borrowers who went into arrears – even those who were correctly charged – will receive a refund, in order to avoid “lengthy delays and uncertainty”, the FCA said.

From 25th February letters will be sent to all borrowers, with refunds being paid from this date.

If you think you’re one of those due a refund, you don’t actually need to do anything, though you can call the Yorkshire Customer Relations team on 0800 923 0045 for more information.

See how much a mortgage could cost you and get help from an expert mortgage adviser

More on mortgages:

Should you fix your mortgage for a decade?

Property hotspots

How to beat Stamp Duty

The best Help to Buy mortgages

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.