Fees for Buy-to-let mortgages
(FSA) Financial Services Authority
have introduced a type of deadline and mortgage lenders will have
to take account of this. These new rules will be based on mortgage
The Financial Services Authority said
that mortgage lenders must stop hitting people with large exit
fees. FSA feel that there is no need for this fee and something
should be done.
FSA have stated that this unfairness
should stop from 31st July 2007. ING Direct the research firm
have found out that 11 million borrowers mainly Buy-to-let mortgage
based are paying additional exit fees of nearly 2 billion pounds.
Robin Gordon Walker at FSA commented,
"If a lender presents an exit fee as being to match the costs
of the work of exiting the mortgage, he should ensure that it
is just that cost and no more."
"If the cost charge is greater
than the actual cost, then it is potentially a breach of the contract
and could be unfair."
In the near future FSA are planning
to look into sub-prime mortgages as borrowers are vulnerable and
they are missing lucidity.
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