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Mortgage Exit Fee 125% Increase

Can anyone point me in the right direction please.

When I signed up for my Base Rate Tracker with the Abbey (18 Months ago)the mortgage exit fee was listed as £99 but may increase. I've now found out that it's increased by £126 to £225. I think this is unreasonable.

Does anyone know where I can find a standard letter to complain? and what are the governing bodies in addition to the FSA who can help?

Comments

  • The fees are legal. The FSA are already investigating these fees, so no need to complain to them.

    Try writing to your lender, but dont hold your breath.
  • Haggy_3
    Haggy_3 Posts: 23 Forumite
    There is no doubt that the fees, in themselves, are legal.

    The question in law is are they disproportionate. Eg What would happen if they decided to raise the fees to £1,000....£1,000,000. Its clear that unfairly punitive fees are not legal.

    I would think though that you could only complain if you had to pay them. Then it a case of going through the same process that the bank charge claimers are.
    A shadowy flight into the dangerous world of a man who does not exist.

    A young loner on a crusade to champion the cause of the innocent,
    the helpless, the powerless, in a world of criminals who operate above the law.
  • Rick62
    Rick62 Posts: 989 Forumite
    The lenders are apparently terrified of testing these charges, and if you challenge them many people have been sucessful in having them reduced.
    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.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    A thread with other people in the same boat:

    http://forums.moneysavingexpert.com/showthread.html?t=100358

    It seems to work

    HTH
    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.
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