lenders are scrapping exit charges, levied when a home loan is paid off, following pressure from the Financial Services Authority (FSA).
HBOS, which includes the Halifax, has become the latest lender to scrap mortgage exit fees.
Earlier this year, the FSA said that lenders had raised mortgage exit fees too rapidly and some customers could be in line for a refund.
But lenders are simultaneously raising mortgage set-up fees, researchers say.
Investigation
The level of mortgage exit fees had shot up in the last four years, from an average of less than £100 to about £200.
In the most extreme cases, lenders were charging customers £300 to wind up their mortgage.
Following complaints from consumer groups, the FSA investigated exit fees.
It found that raising the fees might be unfair, especially if there was nothing mentioned in the mortgage deal giving the lender the power to do so.
As a result, people who had paid the raised charges were able to go back to their former lenders and ask for some of their money back.
In response to the FSA findings, lenders have acted to cut or abolish their exit fees.
Cheltenham & Gloucester, Standard Life, Royal Bank of Scotland and Northern Rock have all scrapped their fees.
Likewise, on Tuesday, HBOS got rid of its exit fee altogether.
Sources : http://news.bbc.co.uk/
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