19
Dec
Exit fees clampdown is only partially successful
Moves from the Financial Services Authority (FSA) to clamp down on
exit fees have been only a partial success, it has been
claimed.
According to online mortgage firm Mform.co.uk, many borrowers have
benefited from lenders, including Royal Bank of Scotland and Lloyds
TSB scrapping fees altogether.
However, at the same time, lenders who are still charging exit fees
have increased the cost of these by around 33 per cent in the last
two years.
These now range in cost from anything from £100 to £295,
Mform said.
Francis Ghiloni, marketing and business development director at
Mform.co.uk, said: "It is good news for borrowers that some lenders
have scrapped exit fees, however it is clear that these charges
don’t relate to the cost of administration when closing down
a loan and borrowers are waking up to the fact that these charges
are really just part of the price of the mortgage deal."
He added: "Borrowers who regularly remortgage and move from lender
to lender need to take account of exit fees as well as application
fees and other costs which will have an impact on the true cost of
their loan."
