Mortgage Exit Fee’s
An often overlooked cost when comparing or arranging a mortgage is the exit fee. This is not the redemption penalty but a charge by your mortgage provider for releasing their hold on the title of your property.The Financial Services Authority have given mortgage lenders until the 31st of July to respond with their justification for the fees. This has already proved too much for HSBC, C & G and Bristol and west who have already decided to scrap their fees. ING Direct and Stafford Railway Building Society have not charged fees for some time.
Alliance and Leicester currently leads the market with an exit fee of £295 which has rocketed over the last couple of years.
Whilst there is an obvious cost to mortgage companies due to the work required to release their charge there is also a massive difference between a reasonable £30 cost and blatant profiteering by charging £295. If you are currently looking for a mortgage this cost is well worth considering a mortgage broker such as www.firstforfinance.net will be able to advise you on the full costs of your mortgage.
If your exit fee has risen sharply since you entered into the mortgage check out www.moneysavingexpert.co.uk which is treating this cost the same as bank charges and gives information on how to recover the charge.
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