The Financial Services Authority (FSA) has urged borrowers who think they have been charged higher exit fees than the one originally set out in their mortgage contract to reclaim them. The controversial fees, charged by mortgage lenders to borrowers ending their current deal, range from £50 to around £300.
Back in January this year however, the FSA issued a Statement of Good Practice, which said that customers were being charged higher exit fees than they had expected. The FSA set out how it expected future customers should be treated and called upon mortgage lenders to review their exit fee charges by the end of July.
As a result, some of the UK's biggest lenders have since scrapped their charges for new customers.
Exit fee – 31 JulyAction taken
However, other lenders, such as Abbey have simply recategorised their exit fee, while Nationwide has decided to keep it.
"It is disappointing to see that whilst some lenders have managed to eradicate their fee others are still making a profit at their customers' expense," says Moneyfacts spokesman Andrew Hagger.
The FSA urges customers who think they have been charged a higher exit fee than the one stated on their contract when they signed up to the mortgage, to contact the lender to find out if they are eligible for a refund of the difference.
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