Mortgage Exit Fees

When you pay off your mortgage, either at the end of its term or to change it to another lender, you are likely to be charged a fee. This fee is a MEAF or Mortgage Exit Administration Fee (sometimes called a 'deed release fee'). A MEAF is there to cover the staff, legal, administration and registration costs incurred by the mortgage lender at the point of termination.

The chances are the MEAF is stated in the original contract for the mortgage and could be as little as £30-£40 depending on when the borrower entered into the mortgage. Over the last 5 - 10 years MEAF costs have increased tenfold with some lenders ignoring what the original contract said and trying to levy charges of £300 or more on exit or having clauses inserted into newer mortgages stating something like 'fees may increase over time'.

In January 2007, the FSA launched an investigation into MEAF charges and concluded that they were, in the main, unjustified and that insertion clauses like the one above were not sufficient grounds to charge hugely inflated fees. In fact if there was any doubt about the justification of the fee then '...the interpretation that favours the consumer must be used'.

Mortgage companies have a wide range of standpoints on this matter even though the ruling is very clear but one thing is certain. Should you have terminated or changed your mortgage in the past 6 years the chances are we be able to get some money back for you!

Are you eligible? >>