Good news for homeowners!
Mortgage companies are being forced to reduce exit fees paid by consumers when they switch mortgage providers or change to a different mortgage product.
‘Last month, the FSA gave mortgage firms until the end of February to reduce exit fees, charge nothing or justify any hikes they had made since the original policyholder’s contract. ‘
What this means for many mortgage customers is the ORIGINAL fee stated when the mortgage was first taken out STILL STANDS. Any increases that have been experienced over the term are to be reduced back to the original amount.
Also, customers that have recently switched mortgages may be entitled to a refund if an excessive fee was paid.
It is estimated the actual cost involved in processing a switch is around £50.
How do you go about claiming back your fee?
Some mortgage companies have already started to issue refunds to past customers and many people have already received cheques for hundreds of pounds.
If you have not received a refund and believe you are entitled to one, you will need to write to the mortgage provider that charged the fee and ask them to investigate.