What is an exit fee and how much is it?

What is an exit fee and how much is it?

Ray Boulger (Mortgage Advisor) gives expert video advice on: What is a Homebuyer's Report?; What is stamp duty and how much is it?; Is there anyway that I can avoid paying stamp duty? and more...

An exit fee is not to be confused with an early repayment charge. The exit fee is the fee which the lender charges when you finally pay off your mortgage. Whether that's because you sold the property or you are remortgaging. Typically the amount will be between one hundred pounds and three hundred pounds but it does vary considerably from lender to lender. As a result of a recent ruling by the Financial Services Authority, lenders now have to commit to charging you when you redeem the mortgage the amount of exit fee which you were quoted on the original illustration. So, it is possible now, in nearly every case, to know exactly how much you are going to pay when you take a mortgage out, and therefore you can factor in the amount of the exit fee into deciding how good of a value the mortgage is.