Lenders decide to quote fixed exit fees on KFIs

Top lenders have bowed to the Financial Services Authority and will stick to the exit fees quoted in their Key Facts Illustrations.

In January, the regulator challenged lenders to charge no fees, their original fees, revised fees, or increased fees. They were given until February 28 to decide which route to take.

Following the deadline, eight top mortgage lenders including HBOS, Alliance & Leicester, Northern Rock and Nationwide have confirmed they will quote fixed and transparent exit fees on their KFIs.

Ray Boulger, senior technical manager at John Charcol, says: “I would have been amazed if lenders had done anything else. Now, what you will pay if you leave a mortgage will be quoted on the KFI so there will be no nasty surprises for customers or brokers.”

But Danny Lovey, sole broker at The Mortgage Practitioner, says: “Exit fees still bring the industry into disrepute.”