Exit and Completion fees

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Financial Services > Mortgages > Mortgage Fees and Costs > Exit and Completion fees

Exit fees

Most mortgage lenders have now moved to cut down on or completely remove exit fees from the mortgage loan process. This follows Financial Services Authority scrutiny and recommendation, and the refunding of millions of pounds worth of unfair exit fees to borrowers in recent years.

Lenders, who initially charged a fee when borrowers completed or paid off their mortgage to either finish their payments or get a remortgage, have had to revise their policy. Exit fees had grown quickly, and in the eyes of the FSA, unfairly.

Some lenders were charging over £300 simply to wind up their mortgage. The FSA ruled that this was unfair, particularly if nothing was mentioned about it in the mortgage contract.

In response to scrapping exit fees, many mortgage lenders are raising arrangement fees.

Completion fees

Some lenders charge completion fees, although these are less common than arrangement fees.

Completion fees are usually charged on the day that the borrower moves into their new home, and are generally set between £200 and £400.

It is rare that a lender will charge both arrangement and completion fees, but it does happen.

Next: Other mortgage fees and charges >>

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