Mortgage Exit Fees: Up and Out

Mortgage Exit Fees: Up and Out

Exit Fees

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.

There are 2 comments for this article
  1. Emma at 5:15 pm

    We enquired with first active about buying ourselves out of a fixed rate which we will be paying for another 4 years yet..as current rate we are paying is 5.65. We were told we would have to pay 3700 breakage fee and we will lose the option of going on a tracker rate mortgage if we remortgage with another bank.Like the comment above i found first active very unhelpful also. Can someone let me know who has been in the same situation and switched to another bank;..;..is it worth it..??

  2. nic_w at 8:13 pm

    We had to buy ourselves out of a 3 year fixed rate mortgage at a rate of 5.2%…it cost us the bones of E5,500. I will never again do business with the EBS, they were most unhelpful and didnt even want to negotiate a breakage fee. Completer disgrace!

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