Exit fees are not the end of mortgage charges

Analysis by MoneyExpert.com shows you could still be hit with up to seven different types of charges relating to your mortgage.

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And theoretically the combined total average cost of the seven other fees is £917 – not including the application fees levied for fixed rate or discount deals.

Banks and building societies have slashed exit fees – charged for ending your mortgage and moving to another lender – following a clampdown by the Financial Services Authority.

The cuts have opened the doors to millions of mortgage customers to reclaim overpayments of between £100 and £200.

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However, MoneyExpert.com is urging borrowers to keep a close eye on other fees in case they are unaware of alternative charges they may be liable for. Its analysis shows mortgage lenders’ contracts allow them to impose a range of other fees.

The seven charges relate to anything from valuations to reinspections, releasing property deeds to your solicitor and even administration. Average fees vary from £29.90 for transferring funds to a bank account to £244.59 for a homebuyer survey.

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Sean Gardner, Chief Executive of MoneyExpert.com, said: “Borrowers may be delighted to be recouping some of the extravagant exit fees they’ve paid recently, but they’re far from out of the woods given the array of other costs lenders can impose.

“It seems that when it comes to mortgages you’re rarely free from an extra levy. Mortgage companies will find other ways to generate revenue and fees for a range of administrative tasks are one way.”