reclaiming mortgage arrear and late payment charges

[woodymeg]

Hi just wondered if i could reclaim these on an old mortgage and my present one -, and just wondering if any one has claimed this and been sucessful . Thanks

[WendyB]

Re: reclaiming mortgage arrear and late payment charges

Old mortgage, yes. Current mortgage, still yes but I would be carful whilst your mortgage is still cuerrent with them as you don't want to put yourself in the position of them taking retaliatory action and demanding payment in full etc. Check the terms of your mortgage very carefully. There are a few who have been successful. You can claim back 12 years I believe.

[scoobydoo]

Re: reclaiming mortgage arrear and late payment charges

I agree I have seen a few sucesses recently . Adapt the bank charges letter and start with the repaid loan first.

To proceed you will probably have to go through the FOS.

http://www.thisismoney.co.uk/mortgag...9&in_page_id=8

[WendyB]

Re: reclaiming mortgage arrear and late payment charges

Scoobs, sorry to butt in, but can you point me in the right direction of guidance as to where it is actually stated that we can go back 12 years with mortgage charges claims? I am about to hit LTSB for my old mortgage charges but want soemthing to refer to.

[scoobydoo]

Re: reclaiming mortgage arrear and late payment charges

I dont know actually - I guess that is based on the fact that they can chase you for shortfalls for 12 years - there were a few posts on cheshirelads thread?

[calamity jane]

Re: reclaiming mortgage arrear and late payment charges

Is this what you're looking for?

Section 20 of the Limitations Act 1980 states;

20 Time limit for actions to recover money secured by a mortgage or charge or to recover proceeds of the sale of land

(1)No action shall be brought to recover—
(a)any principal sum of money secured by a mortgage or other charge on property (whether real or personal); or
(b)proceeds of the sale of land;
after the expiration of twelve years from the date on which the right to receive the money accrued.
(2)No foreclosure action in respect of mortgaged personal property shall be brought after the expiration of twelve years from the date on which the right to foreclose accrued.
But if the mortgagee was in possession of the mortgaged property after that date, the right to foreclose on the property which was in his possession shall not be treated as having accrued for the purposes of this subsection until the date on which his possession discontinued.
(3)The right to receive any principal sum of money secured by a mortgage or other charge and the right to foreclose on the property subject to the mortgage or charge shall not be treated as accruing so long as that property comprises any future interest or any life insurance policy which has not matured or been determined.
(4)Nothing in this section shall apply to a foreclosure action in respect of mortgaged land, but the provisions of this Act relating to actions to recover land shall apply to such an action.
(5)Subject to subsections (6) and (7) below, no action to recover arrears of interest payable in respect of any sum of money secured by a mortgage or other charge or payable in respect of proceeds of the sale of land, or to recover damages in respect of such arrears shall be brought after the expiration of six years from the date on which the interest became due.


and on MSE ;

http://forums.moneysavingexpert.com/...html?t=1801461



This means that if any charges have been added to the principal sum you can claim back 12 years. However, be careful as unless any charges have been capitalised they have not been made part of the principal sum and therefore the normal 6 years will apply.

If you are wishing to claim back fees beyond 6 years which have not been added to the principal sum you would need to invoke s. 32 of the Limitation Act. It is suggested that you only do this if you are fully prepared to research and fully understand the implications before commencing on any court action.


cj