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Exit Fee!

silvertop53
silvertop53 Posts: 3 Newbie
in Mortgages & endowments
I have just been informed by A and L that they want £195 "administration fee" to close my mortage account. I only owe £3.182.
I find this extortionate. Any advice would be welcome.

Thanks.

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Why is it 'extortionate'?
    The fee would have been detailed on your mortgage offer letter.
  • dunstonh
    dunstonh Posts: 120,838 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I find this extortionate.
    Why did you agree to take out the mortgage in the first place with then?

    A&L have never hidden their exit charges and indeed used to use it as a marketing tool as they would waive it each time you bought a new deal. Therefore only charging it on full redemption. It was also costed in with the deal you bought as part of the overall pricing.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • rsykes2000
    rsykes2000 Posts: 2,494 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    silvertop53 wrote: »
    I have just been informed by A and L that they want £195 "administration fee" to close my mortage account. I only owe £3.182.
    I find this extortionate. Any advice would be welcome.

    Thanks.

    Why does it matter how much you owe - the fee would be the same if you were paying off 100K as it would 1K. You would have been told the fee when you signed up for the mortgage and unless it has changed since then, you have no reason to complain as you signed agreeing with it.
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