Lenders slash mortgage fees by Finance News Bulletin

Published: 09/02/07

News Companies & markets Investing authority portfolio Campaigns Mortgages & homesMortgage featuresInsurance Consumer advice Broadband & phones departure Saving & banking Credit & loans little business Tax & wills Message boards Money blog Tools & calculators inquire an expert Guides Compare & buyBanks and building societies have started plummeting the mortgage way out fees they charge consumers in anticipation of a crackdown by the City watchdog

TAKE PART IN OUR review Tell us what you think of This is Money and help shape our prospect (you could even earn £35)A ONE-MINUTE MAKEOVER If you only have one minute to learn how to sort your money, forget the rest and read this>> Our 8pace planSeveral mortgage lenders have so far adjusted the cost of mortgage exit fees after the Financial Services power (FSA) said firms that increased their fees during a client's obtainable deal would have to explain themselvesThese fees are charged to homeowners who have come to the end of their existing mortgage contract and who are moving to a different lender Barclays/Woolwich and coalition & Leicester, which have the highest fees, have promised to honour the unique cost of the mortgage way out fee borrowers signed up for

This means those who took out a mortgage before August 2004 with A&L will disburse £195 instead of the current £295, and those that signed up for a Barclays/ Woolwich deal before January 2004 will pay a utmost £195 instead of £275From February 1, Portman's fee dropped by £50 to £145, while Kent dependence has already moved from £225 to £150, and from February 5 West Bromwich stopped up charging a £100 deeds release fee and reduced its overall cost to £200Exit cost came under scrutiny after banks and building societies began rising them part-way through mortgage contracts Customers who understood that they would have to pay a £50 mortgage exit charge when they first took out the mortgage found this has risen to as much as £225

clientele argue that these increases are unfair since they change the actual cost of the mortgageself-governing brokers, such as London & state, argue that the best way to figure out if a mortgage is right is to work out the total cost over the word, including all feesThis is particularly pertinent in the current mortgage market where many lenders offer a range of products with far above the ground fees and low tax, and lower tax with higher fees Once the overall cost has been calculated, there sometimes be as small as a few pounds difference between products

How much can you maintain back We've compiled a list of the fees charged by the 26 major lenders to assist you reclaim your way out feesSo if you decided on one particular deal because it seems the cheapest, the slightest add to in fees could mean that another loan would have been improvedA&L's exit charge is the highest at £295, Barclays/Woolwich charges £275, Northern astound £250, and Abbey, Cheltenham & Gloucester, Natwest and Halifax all charge £225

HSBC and ING straight do not charge any exit cost, while many of the smaller building societies inquire for around £50Last week, the FSA demanded answers from lenders that had increased their mortgage exit administration charge It wants the complaints of past customers who experienced a trek in their rate to be treated equally alongside current clienteleMelanie Bien, associate manager at independent mortgage broker Savills Private Finance, says: 'Lfinishers have until the finish of this month to make a decision on exit fees and we wait for many of those charging fees at the top end of the level to reduce them accordingly, rather than have to answer to the FSA

'This is excellent news for borrowers as way out cost will be fairer, because they should better reflect the true price of closing a mortgage account or switching a borrower to a new lender'This is cash brings you the best news, features, advice and remark If you were interested in this article then follow these links for more top tips© 2007 Associated Northcliffe Digital Ltd conditions Privacy policy Advertise with us LoansCardsMortgagesInsuranceCompare the most excellent deals around with This is Money

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