Reclaim Unfair Mortgage Fees

Mortgage exit administration fees have largely remained static for years, and it wasn’t until 2004 that the fees started to raise quickly.

Spurred on by the Alliance & Leicester the mortgage lenders argued that they had a right to increase their fees, which according to the terms of their mortgage contracts they could.

During this period of increased fees it appears that the banks got a little too greedy, with some charging fees as high as £300, and as you’d expect this caused somewhat of a backlash from borrowers.

The Financial Services Authority have since concluded that the increases were unfair and that borrowers who paid the increased fees are likely to be owed a refund (borrowers who switched their mortgage away or cleared it altogether)

How much of a refund depends on a couple of things:

1. The least amount of money you can claim back will be the difference between the feed you paid, and the fee that was written on your original mortgage agreement.

2. You can also make a claim simply because you may feel the fee you paid was too high. It may be that rather than refer your case to the Financial Ombudsman or the small claims court, thebank may simply pay you back some of the money.

It is believed the true cost incurred when closing a mortgage is around the £35 mark.