Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • logie48
    • By logie48 16th Jul 17, 10:53 PM
    • 67Posts
    • 10Thanks
    logie48
    Mortgage Exit Fee
    • #1
    • 16th Jul 17, 10:53 PM
    Mortgage Exit Fee 16th Jul 17 at 10:53 PM
    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.
Page 1
    • Thrugelmir
    • By Thrugelmir 16th Jul 17, 10:57 PM
    • 54,334 Posts
    • 47,149 Thanks
    Thrugelmir
    • #2
    • 16th Jul 17, 10:57 PM
    • #2
    • 16th Jul 17, 10:57 PM
    What are you refering to by "exit" fee?
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • logie48
    • By logie48 16th Jul 17, 11:02 PM
    • 67 Posts
    • 10 Thanks
    logie48
    • #3
    • 16th Jul 17, 11:02 PM
    • #3
    • 16th Jul 17, 11:02 PM
    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.
    Last edited by logie48; 16-07-2017 at 11:26 PM.
    • Jkbc90
    • By Jkbc90 16th Jul 17, 11:11 PM
    • 64 Posts
    • 22 Thanks
    Jkbc90
    • #4
    • 16th Jul 17, 11:11 PM
    • #4
    • 16th Jul 17, 11:11 PM
    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
    • By Jkbc90 16th Jul 17, 11:13 PM
    • 64 Posts
    • 22 Thanks
    Jkbc90
    • #5
    • 16th Jul 17, 11:13 PM
    • #5
    • 16th Jul 17, 11:13 PM
    And yes it's noted as redemption admin charge, payable on final repayment.
    • Thrugelmir
    • By Thrugelmir 16th Jul 17, 11:18 PM
    • 54,334 Posts
    • 47,149 Thanks
    Thrugelmir
    • #6
    • 16th Jul 17, 11:18 PM
    • #6
    • 16th Jul 17, 11:18 PM
    It will certainly influence your choice of lender if these are excessively high. This fee can act as golden handcuffs for some lenders.
    Originally posted by logie48
    Care to quote an example that you consider to be "handcuffs" ?
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • logie48
    • By logie48 16th Jul 17, 11:19 PM
    • 67 Posts
    • 10 Thanks
    logie48
    • #7
    • 16th Jul 17, 11:19 PM
    • #7
    • 16th Jul 17, 11:19 PM
    And yes it's noted as redemption admin charge, payable on final repayment.
    Originally posted by Jkbc90
    ..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
    • By logie48 16th Jul 17, 11:21 PM
    • 67 Posts
    • 10 Thanks
    logie48
    • #8
    • 16th Jul 17, 11:21 PM
    • #8
    • 16th Jul 17, 11:21 PM
    Care to quote an example that you consider to be "handcuffs" ?
    Originally posted by Thrugelmir
    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
    • By amnblog 17th Jul 17, 8:08 AM
    • 9,537 Posts
    • 3,687 Thanks
    amnblog
    • #9
    • 17th Jul 17, 8:08 AM
    • #9
    • 17th Jul 17, 8:08 AM
    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
    • By ACG 17th Jul 17, 8:59 AM
    • 15,050 Posts
    • 7,611 Thanks
    ACG
    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
    • By amnblog 17th Jul 17, 9:22 AM
    • 9,537 Posts
    • 3,687 Thanks
    amnblog
    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
    Originally posted by ACG
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,631Posts Today

8,961Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin