Reclaiming Mortgage Exit Fees
Many banks and building societies have increased their exit fees for mortgages to unprecedented levels in recent years. However, in the light of the penalty charges fightback by many bank customers, these unfair mortgage charges have also come under scrutiny.
It has been judged that the fee payable by the customer at the end of the mortgage should be no higher than that agreed at the beginning of the mortgage. Accordingly, many banks and building societies have been making repayments of the difference, to those customers or ex-customers who apply.
A confusing factor is the variety of terms used to describe these charges. They are vaiously decribed as mortgage exit fees, deeds release fees, admin fees, mortgage resemption fees and sealing fees.
What should you do?
Check out the difference between what the fee was at the beginning of the mortgage and what you paid at the end. If you haven't got the original literature, write to your mortgage provider and ask. Then send a polite letter asking for them to refund the difference. Most will refund the difference between the original exit fee and the fee they actually charged with little resistance and fairly promptly.
