Deadline looms on exit fee announcements
(01 March 2007)

The end of February marks the deadline set out by the Financial Services Authority (FSA) for mortgage providers to announce their decision concerning maintaining exit fees through the life of a mortgage.

Price comparison firm moneysupermarket.com reports that providers that have responded to the FSA have announced the fixing of exit fees to be paid by consumers when mortgage is purchased.

Louise Cuming, head of mortgages at the company, commented that this response illustrates the power of the FSA and is an improvement to earlier calls for action on the issue.

"However, I believe that a note of caution is still needed," she said.

"Although providers are now saying the right thing, this is not the same as actually delivering on their promises.

She added that borrowers should pay close attention to exit fees they are charged to ensure that promises made by lenders are kept.

Last week, the ifs School of Finance urged consumers to take in mind the cost of administrative fees in addition to interest rates when choosing a mortgage.