Mortgage exit fees scraped
Some of the major lenders out there have decided to scrap the charges they place on borrowers when the repay their home loan early or change to another lender.
Complaints to regulators have increased over the past few years as some lenders have increased their mortgage exit fees by as much as 100%. This increase in fees is completely unfounded and is for no other reason than to take more money from the borrower.
However we the consumer have finally had a lucky break and many of the major lenders have decided to scrap the exit fee due to the pressure placed on them from the governmental regulatory body as well the fact that many borrowers are now reclaiming the mortgage exit fee that they have been charged.
Britain’s largest mortgage lender the Halifax has been the most recent bank to announce that it is scrapping the fees and this came on the day of a deadline set by the FSA (Financial Services Authority) for lenders to inform them of what action they were going to take over loan exit fees.
There have been an increasing number of borrowers writing to the banks to reclaim the fees they had to pay as the fee is estimated to be considerably more than the actual cost of administering the exit of a mortgage deal. The majority of the fee is profit for the bank and this fee has not been agreed upon by the lender and the borrower. So the bank has no legal right to charge it.