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Scotland

Mortgage arrears charges

If a borrower has mortgage arrears, it is likely that their lender can charge her/him mortgage arrears fees. If these default fees are excessively high, the borrower may be able to complain and claim some money back.

Mortgage arrears fees are charged to cover the additional costs accrued by the lender in dealing with the arrears (for example, to pay for postage, stationery and staff and administration costs). However, the fees charged can be greatly in excess of the actual costs incurred, particularly if the lender continues to charge the fees on a monthly basis while the borrower remains in arrears, when the lender is not actually in contact with the borrower. As such, the fees may be considered unfair and legally unenforceable.

Clients affected by this may be entitled to claim some of these fees back. They may be able to get assistance with this from a Money and Debt adviser.

This content applies to Scotland

Last updated: 27 November 2019