Mortgage Exit Fee

Why is this never stated on a Key Facts Illustration?

Surely this information is crucial, especially at the period when you come to remortgage. It will certainly influence your choice of lender if these are excessively high. This fee can act as golden handcuffs for some lenders.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546
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    What are you refering to by "exit" fee?
  • logie48
    logie48 Posts: 98
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    edited 16 July 2017 at 10:26PM
    Apologies, it may be known as a redemption fee, deeds release fee, etc.

    May not be all Key Facts Illustrations, but i'm checking one i've received for a mortgage and there is no mention of it, contrary to the documentation on their website.
  • Jkbc90
    Jkbc90 Posts: 85 Forumite
    It's on my key facts from Nationwide, it isn't much though but definitely think it should be documented if there is one.
  • Jkbc90
    Jkbc90 Posts: 85 Forumite
    And yes it's noted as redemption admin charge, payable on final repayment.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    logie48 wrote: »
    It will certainly influence your choice of lender if these are excessively high. This fee can act as golden handcuffs for some lenders.

    Care to quote an example that you consider to be "handcuffs" ?
  • logie48
    logie48 Posts: 98
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    Jkbc90 wrote: »
    And yes it's noted as redemption admin charge, payable on final repayment.

    ..Or change lender, i.e. remortgage. Can't believe there is no mention of it.

    Could you challenge a lender if they attempt to recover this fee and it is not on the KFI?
  • logie48
    logie48 Posts: 98
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    Thrugelmir wrote: »
    Care to quote an example that you consider to be "handcuffs" ?

    Well if this is £200+ then it could be the difference between changing lender to a potentially cheaper lender, or staying with your current (i.e. handcuffed due to the fee) especially if the information is not presented in front of you in the KFI.
  • amnblog
    amnblog Posts: 12,412
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    All standard fees will be on the KFI.

    Certainly, release or exit fees will be listed.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG
    ACG Posts: 23,677
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    It is normally disclosed in section 8 (fees) on the KFI/Mortgage offer and section 10 (early repayment charges).

    Those sections may be different on newer ESIS documents, but anything over 12 months ago would be in those sections.

    If they are not disclosed on your KFI/Mortgage offer then yes I would appeal them.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,412
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    ACG wrote: »
    It is normally disclosed in section 8 (fees) on the KFI/Mortgage offer and section 10 (early repayment charges).

    Those sections may be different on newer ESIS documents

    Sections 4 & 9 in an ESIS

    The redemption charge in section 4.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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