Buy-to-let mortgage exit fees tripled in the last four years

16/05/2007

Within a 5-year period, it has been proved that mortgage exit fees have been tripled; this is leaving borrowers to pay large fees of up to £300.

Moneyfacts.co.uk have done research and concluded that mortgage lenders have risen the exit fees simply to make up for lost revenue from 2006, Office of Fair Trading are stating that there should be some sort of cap on charges struck by banks.

Today it has been claimed that borrowers, especially mortgage holders in the buy-to-let sector, are going to experiencing high mortgage exit fee charges, as the figure was mentioned £300. Looking at figures in 2002 these exit fee charges were only £100 and if no action is taken then this figure will increase further.

Spokesperson for moneyfacts.co.uk indicated to the Scotsman.
"It seems some mortgages have a real sting in the tail,"

"It is hard to see how some banks and building societies can justify high mortgage exit fees."

The Financial Services Authority will assess lenders who have been charging borrowers with these high exit fees. This initially will help borrowers to save money on the long-term.