nce again the charging of mortgage. Nationwide which
excessive fees by financial previously had no exit fee now
organisations has come charges £99.
under the spotlight. Recent
concern about excessive credit In addition to exit fees
card and bank account fees is now increases, arrangement fees have
followed by a focus on the also jumped recently to levels as
mortgage industry and the high as £700 in some cases. The
administration fees that mortgage Council of Mortgage Lenders which
providers charge when they setup represents the banks and building
and close mortgage arrangements. societies on mortgage matters
claims that although fees have
A few years ago these fees were increased, other charges had gone
very small or not charged in some down and that interest rates are
cases. However they have now lower. The FSA is not about
increased sharply over recent to buy that excuse we suspect and
months and the FSA wants to know has asked for an explanation.
why. My view is that recent It's disconcerting that mortgage
legislation changes and more companies claim to be lending at
competition have meant that the lower interest rates when rates
mortgage companies have been are largely controlled by
unable to earn money in the usual external factors.
ways on their products, so they
have just taken the easy route of Customers who have suffered are
hiking up fees in order to keep being encouraged to complain to
profits high. Companies such as their lenders in the first case
Abbey, Alliance and Leicester, and then refer to the Financial
Cheltenham and Gloucester and Ombudsman service if they are
Northern Rock all charge between still not satisfied. It seems
£250 and £300 pounds to close a that if you complain in an
organised and well-documented mortgage companies are worried
manner, then your fees will about picking a fight with FSA.
either be reduced or refunded
completely – a sure sign that the
About the Author:
Marcus Brooks writes for the mortgage review website www.reviewmortgages.co.uk and the life insurance website www.lifenow.co.uk
Read more articles by:
Marcus Brooks
Article Source: www.iSnare.com 
