Mortgage exit charges -has the con been stopped?

The financial services regulator, the FSA, has announced that the majority of lenders have either scrapped or fixed their exit charges. The regulator took the view that recent increases in charges were unfair and illegal and gave the industry an ultimatum to rectify the situation or face the possibility of court action.

The city watchdog took action after lenders increased their fees, an example being Alliance and Leicester who raised fees from £195 to £295 in August 2005 , without explanation. An estimated 150,000 customers have been able to claim refunds of unfair charges over the last six months. The refunds are normally between £100 and £200 for every regulated mortgage. Most lenders now charge a fee that cannot be varied or have removed the fee altogether.

Sam Cook of Wiseman Financial Managment told Reef "I am pleased to see the regulator has acted to protect borrowers against unfair charges. The concern remains that lenders will simply recoup any lost income by putting up other charges".

http://www.you-can-remortgage.co.uk/