Since the Financial Services Authority FSA recently announced that banks must repay customers who get unfairly charged for bank charges. Customers and the FSA are now turning their attention to mortgage lenders who charge exit fees.
In an increasingly competitive mortgage industry exit fees have been used as a way to increase their slim margins. However as a result exit fees are now much higher than there estimated cost. For example the average exit fee is £200 but the cost is more like £60.
Many mortgage customers may be entitled to a refund. If the mortgage lender charged an exit fee higher than that stated in your original contract. You should write to your bank and ask for the difference to be refunded.
It is thought that over 2 million people who took out a remortgage in the past two years. May be entitled to a refund. This is good news for customers and bad news for mortgage lenders who are facing a potential £190m loss.