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New research shows redemption fee increase

A growing number of mortgage providers are increasing their redemption fees according to recent research by the Moneyfacts mortgage team.

In the twelve months to 31 March 2005, 53 providers have upped their redemption penalty, 23 of which had increased by over 100 per cent. Some examples of the higher fees are Alliance & Leicester increasing their fee from 195 to 295, Cheltenham & Gloucester from 100 to 225 and the Royal Bank of Scotland from 75 to 225.

With the mortgage market as competitive as it has ever been and with interest margins being eroded, lenders are increasing their fees to try to recoup some of the lost revenue but also to deter customers from switching their mortgage.

Moneyfacts head of mortgages Darren Cook says: “If you are only looking at keeping your mortgage with the same provider for a couple of years, a 295 exit fee certainly needs to be taken into account when shopping around.”


FSA refuses to reveal Treasury price cap talks

The FSA says it is not in the public interest to disclose discussions or memos exchanged with the Treasury over the 1 per cent stakeholder cap following a Freedom of Information Act challenge by Money Marketing.

Standard launches another technology guide

Standard Life has launched a free booklet focusing on technology tools to help adviser firms discover the advantages of online planning tools and calculators.The booklet is the fourth in a series of seven free adviser booklets entitled The easy technology guides, designed to give advisers a complete reference library of advice on all aspects of […]


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