Reclaim Mortgage Exit Fees
If you have remortgaged or paid your mortgage off in full in the last few years, then you will also have paid an exit fee to end your mortgage contract with your lender. Agreement to pay an exit fee to your mortgage lender would have been detailed on your mortgage application.
This Mortgage Exit Administration Fee is a fee paid to your lender to cover legitimate expenses incurred by your mortgage company to close your mortgage account, when you either remortgage your property to another lender or pay off your mortgage in full.
Unfortunately, these fees have become yet another money making racket for the mortgage companies so that they can increase their profits at your expense.
Your mortgage lenders should only charge you the original fee you agreed to when you accepted their mortgage offer/contract. These agreed fees should only cover actual expenses incurred such as deed release fees, land registry charges, staff processing costs and a reasonable proportion of general overheads.
The Financial Services Authority (FSA) has agreed that some of these increases were unfair and borrowers who have already paid the fees when they last remortgaged are more than likely owed a refund.
How To Reclaim Mortgage Exit Fees?
There are two different ways to claim back a refund from your lender, both dependent on the fee amount initially agreed when the original mortgage agreement was signed.
a) You will need to look up your past lender and see whether their exit fees increased while you were a customer with them. You can then demand that any difference between the original agreed fee and the actual fee paid be refunded.
b) Alternatively, you may complain to your past lender on the grounds that you feel the fee you paid was too high. Mortgage Lenders may find it easier to pay you back some of the money as a token gesture rather than have matters go to The Financial Ombudsman or the small claims court. It is estimated that the actual cost to close a mortgage account is about £35.
Maybe It’s Time To Reclaim Mortgage Exit Fees Today
For those people who have remortgaged every two or three years to a new lender I would suggest that you approach all of your previous mortgage lenders to reclaim your Mortgage Exit Administration fees. The average fees being returned range from £100 to £250, dependent on circumstances. The greedy banks pushed up the fees by hundreds of pounds to anything as high as £300, and now it is time for the borrowers to ask for recompense for being charged unfair fees to exit their mortgages.
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