Mortgage Penalty Charges

[jax007]

My daughter has just received a list of charges on her mortgage account and they include:

Insurance Fee £40
Lapsed Insurance £40
Solicitors Insurance Fee £100
Standard Solicitors Fee £501.75

The solicitors fees were because the mortgage was put into hands of solicitors for non-payment (which is now resolved).

Can she reclaim any of the above along with the usual charges?

jax

[Mochamoos]

Re: Mortgage Penalty Charges

My daughter has just received a list of charges on her mortgage account and they include:

Insurance Fee £40 NO
Lapsed Insurance £40 DON'T KNOW
Solicitors Insurance Fee £100 NO
Standard Solicitors Fee £501.75 NO

The solicitors fees were because the mortgage was put into hands of solicitors for non-payment (which is now resolved).

Can she reclaim any of the above along with the usual charges?

jax

Does she have an indemnity clause? How much is she claiming?

xx

[Guest]

Re: Mortgage Penalty Charges

I would have to concur with the above.

In Gomba Holdings (UK) Limited v Minories Finance Limited (No 2) [1972] 3 WLR 723 the Court held that the Defendant mortgagees had a contractual right to recover costs, charges and expenses incurred in the litigation on an indemnity basis.

They have a contractual right to add litigation costs and there is little scope to argue that the litigation costs are unreasonable or otherwise punitive - in particular if they can show that this is what they have been billed by their solicitors.

Having said that, your daughter would be entitled to a breakdown of these fees and they do appear to be on the high side at over £600.