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Claim back your mortgage exit fee By Jeff Salway
Mortgage exit fees are at record levels, with many providers charging double the amount of five years ago. The Financial Services Authority is calling on lenders to justify these fees, applied if you pay off your mortgage early or switch to a new What you want You can complain if the exit fee you've paid - or been quoted by your provider - is more than that stated in your initial mortgage contract. Your stance is that you only want to pay the figure in the contract - a perfectly reasonable request. Who to contact Your first port of call should be the person who arranged your mortgage. If they're not around or can't help, ask for the company's official complaints procedure and who can deal with your complaint - you want a name to address your letter to. Make a complaint Always complain in writing, keeping your letter short and to the point, but polite. Set out the facts clearly - the fee has increased since your initial contract - then explain why you're not happy and what you want the provider to do about it. Enclose copies of any relevant paperwork that supports your case, such as a copy of your mortgage contract. Even if you don't have paperwork it's still worth complaining as your lender will have a record of the fee you paid. Don't take no for an answer You're likely to receive a standard reply trying to fob you off, but don't let this deter you. Write back saying you don't accept their response, and you've been advised to take the matter to the Financial Ombudsman Service (FOS) unless a satisfactory agreement is reached. The provider will then either agree to accept the exit fee in the initial contract or they won't, in which case take it to the FOS. Explain your case The FOS will ask you to complete a form outlining your complaint; this can be done by phone on 0845 080 1800, or you can download a copy at financial-ombudsman.org.uk. The points to focus on are how the exit fee has risen, what's the point of putting a fee in the contract if the mortgage company can change it, and that you should have been notified when the fee changed.
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