Mortgage Lenders Back Down On Exit Fees

Some of the UKs biggest banks, including "Halifax", "RBS" and "Lloyds TSB", have decided to scrap the mortgage exit fees charged to borrowers repaying their loan. Pressure had been mounting on the lenders to take action over the spiralling charges, following a significant volume of negative press over the issue and investigations by the governing body, the Financial Service Authority.
Many lenders had significantly increased their exit fees over the last few years, as a way of maintaining profit levels in an ever increasingly competitive market. Alliance & Leicester, as an example, increased their fee from £150 in 2002 to £295 by 2006. This represents an increase of almost 100%, although there was nothing to suggest that the lender themselves had realised a View the rest of this article