Mortgage exit fee controls to change lender practice

Lenders will need to justify any rise in mortgage exit administration fees (MEAFs) after a customer has entered into a contract, under measures the FSA has agreed with the Council of Mortgage Lenders. The new provision comes into effect on 28 February 2007. Past customers who complain about the MEAF they paid will have to be treated in the same way as comparable current customers, which means that if the amount was higher than the original stated exit charge, they will be entitled to claim a refund of the difference.