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Issue 37 - March 2007
This week we look at two topical mortgage stories. First, the FSA have ruled that lenders will have to refund mortgage exit fees where they have been increased unfairly. This potentially affects anyone who has paid off a mortgage in the last few years - if you have been charged more than was quoted in the original contract documentation then you should be able to reclaim the difference - we look at what you need to do. Secondly, we examine the increasing trend of lenders to offer dual pricing on mortgage products - what does this mean for you and what should you watch out for?
We reported recently that banks and building societies were under investigation by the Financial Services Authority in connection with the exit fees they have been charging on mortgages.
The banks were given until 28th February to respond to the FSA and we are now pleased to report that it appears that most lenders have backed down to pressure and agreed to refund these fees where they have been charged unfairly.
I think most people would agree that it's quite a problem to decide which mortgage is best with lenders offering a plethora of different products and rates. For many years lenders have offered different rates depending upon the length of their early repayment penalties i.e. how long you are prepared to be tied in for, but we have recently seen an increasing tendency to now also offer rates which vary depending on how much of an arrangement fee you are prepared to pay.
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