View more on these topics

Abbey reviewing exit fee after FSA statement

Abbey may be forced to overhaul its mortgage exit fee policy amid concerns that its charge is likely to fall foul of the FSA’s new code.

The lender’s intermediary arm states in its tariff of charges that a mortgage administration fee of £225 is “charged to cover the costs of providing, maintaining and closing your mortgage, including a proportion of our overheads”.

As part of the FSA’s crackdown on lenders increasing their charges during a contract term, the regulator says that it does not believe such costs should legitimately apply to the arrangement of the mortgage or the running of the account.

This has prompted speculation about whether Abbey may be forced to cut its £225 charge as it currently relates to more than just closing the account.

Spokesman David Stewart says: “Abbey notes the publication of the FSA statement of good practice on mortgage exit administration fees on January 26, 2007. Abbey is reviewing the FSA statement and its application.”

West Brom last week cut its fee from £300 to £200 while Portman cut its charge from £199 to £145 in the week before the FSA announcement.

London & Country head of communications David Hollingworth says: “I would hope we will see more lenders chop their exit fees as some have already done.”

Recommended

Put value before cost

What an interesting if confusing piece was Antony Williams’ My Beautiful Wrap column of February 8. He says his “very wealthy clients” would not pay the initial charge to Transact. Presumably, on their paths to becoming very wealthy, they will have invested money in some kind of financial instruments. One can only assume that Mr […]

Nimble picking

Despite the odd nervous shudder running through the market, shares have held up well to suggest that no one really believed the Bank of England was about to raise rates again last week. And it didn’t.

Left out in the cold

Worst attempt to get coverage on the back of the recent snowy conditions has to go to those normally reliable folk at Wriglesworth.The lender could still do business despite the cold snap that saw many people up and down the country confined to their homes last week. Wow.The release even featured news of a snowball […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com