Lenders have come under fierce criticism from intermediaries for the spiralling costs of exit fees over the past year and brokers have approached Mortgage Introducer to voice their concerns.
Daniel Clayden, director of Clayden Associates, found the redemption fee for his client’s A&L mortgage had gone up from £150 to £275 during the time the client was with them and he believed it was unfair for lenders to increase the figure during the deal’s duration.
However, Sally Lauder, press manager at A&L, has now announced the lender is to change its policy. “Following feedback from customers and brokers, A&L has taken the decision to fix the redemption administration charge paid by customers when redeeming their mortgage early. This will provide customers with more transparency and certainty, making it even easier for them to take into account all the fees they will pay at the end of the deal. We are always looking to improve the level of service and products we offer to customers, and this is a positive change.”
The move has been warmly welcomed by brokers. “I hope other lenders will follow suit. I believe situations like these should be dictated by market forces as brokers will always go for the best deal for their client. So as long as lenders are upfront about what the fees will be and as long as they are fair, this has to be encouraged,” Clayden added.
Adrian Kidd, IFA at Mint Financial Services, said: “Lenders have been a law unto themselves and have been upping fees, such as redemption fees, as a way of increasing profits. A&L has held its hands up and others should follow suit.”
