According to recent headlines, mortgage lenders are being accused of unfair mortgage exit fees on some borrowers. Now the mortgage lenders who participated in these unfair practices are being force to repay the charges. Could you have been a victim of unfair mortgage exit fees? Could you be able to claim a repayment? It is easy to find out whether you qualify for some money back. All you have to do is familiarize yourself with the terms of your mortgage and exit fee agreement.
In the history of mortgage fees, the fees that a borrow has to pay have stayed relatively stable. But in 2004, prompted by a large lender company, the fees began a dramatic increase. The lenders say they have the right to increase their fees for the mortgage contract. No one is protesting the rise in fees, it is the dramatic jump that has occurred in the lat four years that have borrowers upset. Some banks have been known to push fees into the hundreds of pounds and no one could do anything about it.
The watchdog group Financial Services Authority is now watching out for borrowers. Since the group found that many of these increases were unfair, there is a chance that they borrowers are owed a refund from their lender. If you believe that you have been hit with an unfair exit fee, you can determine how much you will get back by what you paid in and if the increase raised during the period of your mortgage loan.
The first thing you can look at to determine how much you could get back in a refund is to see the difference between the fee that you paid at the end compared to what was originally listed on your mortgage agreement. If you have borrowed money before, you can look at your previous mortgage to compare the difference in fees to see if the most recent mortgage was unfairly raised.
Even if you don’t have anything to compare to, you can still complain to the bank in order to see if they will offer you a refund. If you feel that what you paid for you mortgage exit fee was too high, bring it up to the bank and many times, the bank will refund a portion of the exit fee. Remember that the true cost of a mortgage exit fee should be around £35.
Also, remember that exit fees are charged for the administrative work on the loan. There are other fees that go along with your mortgage that don not fall under this refund category, so make sure you are looking at all the right numbers before you go to claim a refund. If you do feel that you were charged an unfair amount on your mortgage exit fee, you are entitled to ask for a refund. Although you may not get one straight from the bank, you still have legal options that you can pursue in order to reclaim some of the money that you paid.
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