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Mortgage companies give way to FSA pressure |
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Throughout 2007 the FSA has been putting pressure on mortgage lenders to justify the increased charges that many had made to their exit or termination fees. Figures suggest that many lenders had increase administration fees charged at the end of a mortgage for existing borrowers by up to £300. Mortgage companies were given until the end of February to responed to the FSA investigation, although many started to refund overcharged fees well before that deadline. If lenders were not able to prove to the FSA that their increased fees were justified, they could either remove the fee completely or revert to the original charge. By the time the deadline arrived, not one mortgage company had chosen to justify their increased charges, leaving up to 4 million people due for a refund and possible compensation. The mortgage companies have set aside millions of pounds to cover these repayments, but oddly the FSA is not forcing them to make the refunds, choosing to make people submit a claim for their refunds. This leaves some people with the problem of unearthing their mortgage documents indicating the original charge. It will be interesting to see which lenders force claimants to do this, as companies surely hold these records themselves. Media coverage of this topic is likely to continue and highlight clearly who the fairest mortgage lenders turn out to be. |
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September 2007 Bank of England provides savers guarantee FSA continues assessment of PPI selling Self-employed options under review No consensus on UK house prices Debt review for Scotland released Loan plans subject to change August 2007 Dealing with debt is normal today The real cost of raising children Situation with bank charges unresolved Subprime mortgages to be reviewed Second homes set to outperform domestic market Buy-to-Let sector remains buoyant July 2007 Are credit cards encouraging debt? Interest rate increases good for savers Fixed rates making comeback at a cost TCF is good news for customers Borrowers making choices based on reputation Spotlight now on home insurance June 2007 Has the interest base rate reached its ceiling? High street retailers drop the cheque First Direct fee has desired effect Yorkshire Bank pushes penalty fee cases into small claims court Mortgages take bigger slice of income Popular reasons for a loan May 2007 More families rely on two incomes Judgement on overdraft charges Personal insolvency rates slowing down Challenge to home information packs Further interest rate rises expected by consumers April 2007 Annual inflation rate continues to rise House price index shows slight fall Homeownership prospects for public sector workers Current accounts in the UK Mortgage equity borrowing Chip and pin security initiative March 2007 Inflation rate rises again Green mortgages all the rage Car loans can help you buy a better car Debt consolidation loans popular Significant changes in UK home buying 25 year fixed rate mortgages The cost of moving house |
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