Over the past few months banks and lending institutions have increased mortgage exit fees in an effort to avert remortgaging.
Anyone on a fixed mortgage rate will be aware of the benefits of switching to a variable rate mortgage right now. Those on a fixed rate have not benefited from the recent falls in interest rates led by the lower rates of the European Central … Bank. However, if you want to switch your mortgage to a different mortgage policy and reap the benefits of these new lower interest rates, the banks are not making it easy for you. Exit fees only apply when you close your mortgage before the end of the term of that mortgage. By increasing the exit charges banks are trying to lock in their customers to the higher rates.