FSA ruling on Mortage Exit Fees

[DarrenW]

Hi,

I just got this from Financial Adviser. So if you have switched mortgage in the last 4 years it might be worth a try.

If you have changed your mortgage in the last 4 years, you may have had to pay a higher administration mortgage exit fee than the lender originally quoted you.

A few weeks ago the Financial Services Authority investigated mortgage lenders increasing their fees and brought an action against them. This means that any lender who charged you more than their original quote would have to repay the difference to the client should they request it.

We have tested this and we are glad to report that it does appear to work. One of our advisors did this on his own mortgage and received £111 back from his lender.

Due to the Data Protection Act we cannot do this on your behalf, you need to make the call to your previous lender.

To keep things simple all you need to do is call your previous lenders and explain that you want to know if you have been charged a higher amount for the administration mortgage exit fee for closing your mortgage than the original amount given when you took out the mortgage.

They will then be able to tell you if they have and how much they will repay you. Most of the lenders now have teams dealing with these enquiries.

I gave my old mortgage provider a ring last night and got a refund of £133! For further stats checkout the following link

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1170081918,22653,


Darren