Halifax axes mortgage exit fees by Finance News Bulletin

Published: 04/09/07

Halifax, Britain's biggest mortgage lender, has axed mortgage way out fees after bowing to force from a customer backlash and the City watchdog

that's the caution from one economist Read the report and join the 'reader comments' debate: possessions crashHBOS, the group that combines Halifax and Bank of Scotland, announced that clientele who repaid their mortgage or switched to another lender would no longer have to disburse a feeIts move comes on the deadline day for lenders to tell the Financial armed forces Authority what they intend to do about exit cost, which have become controversial since several lenders compulsory huge increases as a way of making simple moneyMillions of borrowers are likely to be able to reclaim mortgage exit cost from lenders, with Council of Mortgage Lenders figures presentation that 1

2m remortgages were in use out in 2006Most lenders have begun refunding either the difference between way out fees paid and the initial way out fee quoted when loans were in use out, or often refunding the whole amountAlongside HBOS, other lenders have said they will scrap way out fees, but most have not revealed their decisions yet Those who will no longer charge customers for send-off are Cheltenham & Gloucester, Northern Rock, Standard existence, and the Royal Bank of Scotland Group, counting NatWest

Experts have warned that lenders may try and raise extra revenue through greater than before fees elsewhere or renamed exit chargesJulia Harris, of financial in order provider Moneyfacts, said: 'With the actual cost of administering the way out of a mortgage deal estimated to be considerably lower than the fee emotional by the lender, the vast proportion of the exit fee is income And, like any other income making organisation, the lenders are unlikely to surrender this income stream without a brawl'A consumer backlash against exit fees began after lenders used small print to lift their cost from around £50 to almost £300 in less than three years

A campaign against exit fees by Financial letters on Sunday and This is Money confident customers to complain to lenders and the Financial Ombudsman repair Meanwhile, widespread disatisfaction at the way fees were being hiked led to the FSA announcing an investigation previous this yearIt said lenders could either axe the cost, agree they would not be increased during the life of the mortgage, or give good reason for any fee hikesBonus

We have now decided to pay off our Halifax mortgage in September when an investment matures This will put aside us £175 and the aggravation of trying to claim it back at a later date We just have to disburse them £50 to get our deeds Another tear off which will hopefully bite the dust like other excessive bank charges

I cannot picture that it costs anywhere near £50 to take our performance out of their storage vault and post them to us even if they push the boat out and send them 'special release'Select a loan term 12 months (1 year) 24 months (2 existence 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 years) 120 months (10 years)Please select a type of cover Life insurance Home and contents Car Breakdown services physical condition - medical Health - dental journey Pet - dog Pet - cat GOThinking about investing in possessions This is Money has

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