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HAVE YOU BEEN OVERCHARGED? Apply for a refund today!
Have you recently switched mortgages or repaid your mortgage ahead of term? If yes, you probably paid a mortgage exit fee or early redemption penalty and stand among thousands of consumers who have been unfairly penalised for exiting your mortgage early.
Our claims management team are currently handling cases of injustice by banks and mortgage lenders towards their customers and winning £100s in refunded mortgage exit fees.
If you would like our claims management specialists to contact your bank on your behalf then please complete the online form or call us on the number above.
We operate on a strictly no win no fee basis and charge a flat fee for a compensation received.
A mortgage exit fee is an administration charge for the early closure of your mortgage agreement. If you are fortunate enough to pay off your mortgage short of the full term or want to transfer your mortgage to another provider, you may be liable to pay an exit fee.
Up until four years ago, a mortgage exit fee was usually static at around £70. However, in 2004, the Alliance & Leicester sparked an unprecedented rise in mortgage exit fees by making an increase of 300% in just two years. Other banks sensing a money making opportunity were quick to follow suit and by 2005 most had hiked up their exit fees, some to almost £300.
The true cost of an exit fee is estimated around £50 – which pays for minimal administration costs.
Whether exit fees are unfair largely depends on your terms and conditions. For many customers, their banks were increasing mortgage exit fees way beyond what was specified within their original mortgage contract. In other cases, banks were imposing a fee that was not included in the original mortgage contract.
The Financial Services Authority – a body established to protect investors’ interests – recently decided to take action against banks over mortgage exit fees. As a result, the FSA have ordered some banks/building societies to cut fees as well as ordered many to refund customers.
Some of the worst offenders of inflated mortgage exit fees:
Northern Rock, NatWest, Royal Bank of Scotland and Woolwich raised fees by £100. However, it was the Alliance & Leicester who proved to be the worst offender with a 300% exit fee increase over two years to £295.
Debts.org is successfully reclaiming mortgage exit fees for consumers who know their entitlements and took the appropriate action. If you signed a mortgage agreement pre-2005 but paid a higher exit fee than agreed on your contract you are entitled to a refund.
Similarly, if you were charged a mortgage exit fee when no mention of such a penalty was given in your contract, you are also entitled to a refund.
To reclaim unfair mortgage exit fees:
We have a fantastic record of recovering mortgage exit fees for our clients and you could be receiving your cheque within 30 days. We look forward to helping you.
