Mias Calls On Mortgage Lenders To Fix Their Exit Fees
Below is a MRR and PLR article in category Finance -> subcategory Mortgage.
Mias Urges Mortgage Lenders to Revise Unfair Exit Fees
Summary
Mortgage and Insurance Advisory Services (MIAS) is highlighting concerns over high exit fees imposed by lenders despite public awareness campaigns. These fees, which borrowers face when paying off their mortgage or switching lenders, can be excessive and unpredictable.Understanding Exit Fees
Exit fees, sometimes called administration charges, sealing fees, or deeds-release fees, are charged when a borrower pays off their mortgage in full, often upon switching to another lender. These fees are meant to cover administrative costs, such as transferring property deeds and generating final account statements. Although borrowers are warned about these fees, the actual amounts can unexpectedly rise.Rising Penalties
Recently, exit fees have surged, with some exceeding £300. Lenders claim these increases are due to rising costs and additional work. However, this reasoning seems insufficient, especially since property deeds are now stored electronically.Call for Transparency
Alistair Good, Managing Director of MIAS, compares this situation to entering a car park with clearly displayed prices that skyrocket unexpectedly. While he acknowledges lenders’ need to cover redemption costs, he emphasizes transparency from the outset. Excessive fees can deter customers, prompting them to explore other options.Need for Fixed Fees
Although exit fees constitute a small portion of overall mortgage costs, unexpected charges of up to £300 are unfair. MIAS advocates for clearly stated and fixed exit fees throughout the mortgage term, aligning with Financial Conduct Authority (FCA) guidelines.One lender, Northern Rock, sets a higher fee of £250 but commits to fixing it at the time of mortgage agreement, setting a commendable precedent.
Future Direction
Roger Milbourn, Director of MIAS, points out that while exit fees are unpopular, they persist. To shed the image of underhanded charges and reduce complaints to the Financial Ombudsman, lenders must be transparent. Fixing fees for the mortgage duration would ensure clients are aware of charges from the beginning. The current system, with potential fee increases of over 350%, undermines FCA’s fairness requirements.In the absence of fixed fees, mortgage brokers should clearly explain closing charges to clients, ensuring a fair comparison of mortgage products.
Contact Information
For further details, please contact:MIAS Ltd
Phone: 0845 833 0878
Managing Director: Alistair Good - alistair@mias-ltd.co.uk
Director: Roger Milbourn - roger@mias-ltd.co.uk
About MIAS
Founded in 2002, MIAS is an impartial mortgage advisory firm, providing comprehensive residential and commercial mortgage services. Known for straightforward advice, MIAS connects clients with competitive deals and manages the whole transaction process smoothly.For more on MIAS services, visit [MIAS Ltd](http://www.mias-ltd.co.uk).
You can find the original non-AI version of this article here: Mias Calls On Mortgage Lenders To Fix Their Exit Fees.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.