View more on these topics

FSA to keep monitoring lenders’ exit fee stance

The FSA has updated on how mortgage lenders have responded to concerns that mortgage exit administration fees have been increased unfairly.

It has found that most major lenders have opted either to charge a fee that cannot be varied during the lifetime of the mortgage or to remove the exit fee altogether. Other lenders will charge a MEAF which reflects administrative costs when the customer exits the mortgage.

A statement of good practice, issued by the FSA in January, highlighted that consumers were being charged higher exit fees than they had expected.

The statement aimed to stop existing customers being charged unexpected increases to MEAFs and to provide a basis on which past customers could seek compensation. It also set out the FSA’s expectation for how future customers should be treated and that lenders should review their approach to this by the end of July.

FSA managing director for retail markets Clive Briault says: “What we are seeing achieves our principal aim of stopping customers from being surprised by unexpected increases in these fees. Customers will know when they sign up for a mortgage what fee they will pay on exit, or should be given a clear idea of how the fee might be varied fairly. We will continue to monitor closely how firms treat their customers in this area.”


Recommended

FSA accused of weakness over exit fee debacle

Exit fees have remained the hot topic in the mortgage world with the FSA’s deadline of July 31 passing earlier this week. But you may be forgiven if you feel the deadline has been something of an anti-climax.

Murray says Transact advisers can meet tough definition of professional planners

Transact’s head of marketing Malcolm Murray says that advisers using his platform will be able to satisfy even a very tight definition of customer agreed remuneration as recently proposed by the ABI. Murray also says that the UK could benefit from the return of direct sales forces selling simple products and protection and suggests that […]

Yearsley warns boutiques could quit enlarged group

Advisers are split over whether Resolution’s investment boutiques will stay with the fund house if the proposed merger with F&C goes ahead.Hargreaves Lansdown senior investment manager Ben Yearsley says he would be very surprised if the four boutiques stayed with the enlarged group.He says: “There is bound to be a change of ownership clause in […]

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