A sneaky practice has come into the market – lenders are pushing up the cost of the deeds release fee. This was accepted as a nominal £50 fee for administration to which nobody objected. But now it is being used by lenders in a sneaky way, by having a redemption penalty (sorry, early repayment charge) introduced through the back door. The FSA should use its powers to stop this abuse of the consumer.
Worse still, new customers are not the ones that are suffering immediately, it is hitting the customers who wish to move their mortgage, plus it is being applied retrospectively.
This practice should be outlawed. If lenders wish to have a fee that is more than a nominal £50 deed release fee then it should be shown upfront as an early repayment charge and the lender’s current customers should not have to endure this retrospectively.
Come on FSA, stop this practice and win the confidence of the market and the consumer.
The Mortgage Practitioner