Alliance & Leicester and Northern Rock have both cut exit fees on their Lehman-funded specialist homeloans to £205. A&L’s exit fee on its prime products is £295 while Northern Rock charges £250.
Both firms sell their specialist loans on completion to Lehman, with Northern Rock’s arrangement beginning this month and A&L last summer.
The move comes after all the major lenders, other than Kensington, agreed in February not to charge borrowers more than the exit fee agreed in their contract following an FSA probe.
Studies have shown the admin cost to close a mortgage account is no more than £50.
The Mortgage Practitioner sole trader Danny Lovey still believes lenders have failed to justify their high fees. In an open letter to Council of Mortgage Lenders director general Michael Coogan, he says: “Your members have made very little effort to lower their exit fees to reflect this as an administrative fee.”