It’s obvious that lenders have not yet got the message about exit fees and how they relate to consumer contract regulations.
The FSA has been nice to lenders so far and allowed them to get the message gently but if they think the campaign will stop, they are wrong.
Exit fees are not only illegal, they are treating customers unfairly. If the real cost of closing a mortgage is 35, according to Defaqto, there is no way lenders should be allowed to continue to defend the indefensible.
I have always said that around 50 is an acceptable charge for this process and I remain committed to ensuring that lenders are brought to account on this issue.
Maybe it’s time to get the Office of Fair Trading involved. The FSA must reiterate to lenders that this fee is an administrative charge not a penalty.
The Mortgage Practitioner