Money News
Today, February 28, was the deadline for mortgage lenders to justify their ramped-up mortgage exit fees to the Financial Services Authority. While it looks like the lenders are retreating, it appears equally clear that they're not hurrying to refund overcharged fees - you'll have to chase them.
Northern Rock has already set aside provision of £15 million to compensate mortgage borrowers who have left the lender and already been penalised by higher mortgage exit fees than those prevailing when they took their mortgage out.
Some lenders acted in advance of the FSA deadline. For example, Alliance & Leicester and Northern Rock have announced that in future borrowers will pay an exit fee at the level quoted when the mortgage agreement was originally signed. Portman Building Society and The Mortgage Works have reduced their exit fees from £199 to £145, while the One Account has said it will charge an exit fee if the duration of a mortgage is five years or less.
By way of contrast, Britannia Building Society charges a £75 discharge fee to cover the administration of the closure with a further charge of £35 for the cost of sealing your deeds on closure of your mortgage account - less than half the fees being charged recently by Abbey, Barclays, Cheltenham & Gloucester and Halifax to name but four.
Don't rely on a lender approaching you voluntarily if you have been overcharged. You are going to have to claim your money back.
Read more: The new squeeze on mortgage exit fees and how to get your money back if you've been overcharged...
28 February 2007 © Moneyextra.com
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