Mortgage exit fees 'illegal'
The BBC has a story quoting mortgage industry insiders who think that the size of mortgage exit fees is a 'scandal', and that some may actually be illegal.
Exit fees are a fee charged by the lender when you switch your mortgage away from them, and are supposed to reflect the administration costs incurred by discharging the mortgage, but with typical fees now rising to £275 or more - compared to £50 only a few years ago - many are saying that they are now a redemption penalty in disguise.
The possibility that the fees may be illegal comes about as all charges are supposed to be transparent in the original mortgage agreement, with it being made clear what the charges are for and any possibility that they may rise.
If exit fees are indeed a redemption penalty by another name, then, say legal experts, the banks may have a case to answer.
Exit fees are a fee charged by the lender when you switch your mortgage away from them, and are supposed to reflect the administration costs incurred by discharging the mortgage, but with typical fees now rising to £275 or more - compared to £50 only a few years ago - many are saying that they are now a redemption penalty in disguise.
The possibility that the fees may be illegal comes about as all charges are supposed to be transparent in the original mortgage agreement, with it being made clear what the charges are for and any possibility that they may rise.
If exit fees are indeed a redemption penalty by another name, then, say legal experts, the banks may have a case to answer.
Mortgage exit fees 'illegal' posted by Nicholas Hunt at 7:14 AM
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