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Challenge legal fees imposed by Mortgage provider

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  • Challenge legal fees imposed by Mortgage provider

    Hi, I have made regular monthly mortgage payments for 17 years. Unfortunately, I was diagnosed with an aggressive/serious health condition and was unable to work (temp job through agency). I was unable to pay my mortgage and received letters from the lender about litigation. I called the lender and told them about my health issues and they classified me as having vulnerable status. However, rather than my case/account remaining with the lender they passed it to their legal team. I called the legal team explained my health issues and they said because I was vulnerable they would need to send me back to the Lender. Unknow to me at no point did the legal team or my lender mention that litigation was being carried out by the legal team for repossession in the back ground. When I was transferred back to the lender I told the lender I would be putting my house up for sale. I listed my house with the agent and the next day I received letter from Legal team they had started repossession proceedings and had assigned a court date. I called the lender as I did not understand why they had got their legal team to start proceedings after I had informed them I was selling the house. Had I been informed about what was happening behind the scenes I would have told the legal team as well that I was selling the house and ask for more time. My lender never informed them. The following day after I received the court letter the action was stopped/ frozen. The house has been sold subject to contract. However, I have my redemption statement which includes £2.5k legal fee. I asked the lender why the costs are so high as I have only ever received two letters (including court summons) and the court action stopped the very next day, which should not have been issued in my opinion as I had informed the lender of the impending sale listing and this information should have been shared with their legal team. Their explanation was they are charging and including "Anticipation" cost. Future Costs - if they had to go to court and for work they would have had to do if they went to court. The fact that the house is sold and the lender is getting their money and there is no need to go to court or additional work that needs to be planned or done. These legal costs are for work they are never going to do or costs of going to court which they will not be going. Surely this can not be fair. Is there any way I can challenge these unfair costs as the lender will not waive them as they say they followed procedure. Also I have had to get the mortgage redemption updated as it has been over 28 days. Legal costs have increased by a further £500. I have had no further communication so why are the legal cost keep adding up? Thanks for any help in advance.
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  • #2
    Write a letter of complaint to the lender stating what has happened and you don't believe you are liable for the legal costs that have been deducted.
    When you receive their reply, and assuming you are unhappy with it, you should refer your complaint to the Financial Ombudsman

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