Follow this draft letter from our forum user to claim a refund on exit fee hikes. Take me to this thread

This is an urgent notice to anyone who has either switched mortgages in recent years or paid off their mortgage in full - you could get £100s back. It is likely that you have paid more on an exit fee than was originally outlined in your contract and last week the Financial Services Authority (FSA) informed lenders that they should repay the difference. I urge you to see if you could claim back your cash, as you could regain as much as £200.

After years of imposing high charges for mortgage exit fees (usually in the region of £150-£300 when the actual cost to the provider is more like £50) the FSA has told lenders that they must justify high charges in the future. Indeed banks and building societies have been told to reimburse customers who have been hit by soaring mortgage exit fees (sometimes known as 'deeds release fees' or 'sealing fees') and reduce the charges for paying off a home loan.

Providers have until the end of this month to make a decision about whether they will continue to charge high fees, scrap them altogether, adjust them or revert to the original fee. Industry experts including Clive Brio from the FSA and Michael Coogan, speaking on Radio 4, have both stated that borrowers should be able to get their money back by contacting a lender without the need to refer to the Financial Services Ombudsman. However, remember the lenders won't come to you with the cash - you have to request it.

If you're wondering how to go about making a claim, then click here to read a forum post from one of our users. He has drafted a letter asking his provider to supply a refund or face further action from the FSA. It's an excellent post and I strongly encourage you to check this out if you feel you'd like to make a similar claim.

Exit fees have grown rapidly over the past five years and chances are that you're owed money as a result. Just look at the table below which illustrates the increase in charges from the leading providers:

Mortgage - exit administration fees

 *Figures sourced by moneysupermarket.com

If you're looking to remortgage or you're a first-time buyer the message is clear - look beyond the headline rates and consider the true cost of the mortgages you apply for. The mortgage comparison tool at moneysupermarket.com gives you a 'true cost analysis' incorporating fees into the quotes you receive and there is also a number you can call for further impartial guidance on 0845 345 5705. One of our advisers will be happy to point you in the right direction.

For now though, use the draft letter outlined in our forum and reclaim the cash that is rightfully yours.

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