Abbey has been criticised for charging borrowers an exit fee for switching between mortgages in their own range. The lender currently charges £225 if a customer moves house, but stays with Abbey. They charge £75 for any other internal switch.
Brokers have questioned whether lenders that operate such a policy will be able to keep their customers, and think it is ironic that lenders still make charges like this when many others are introducing strategies aimed at keeping their clients.
The criticism comes after the Financial Services Authority claimed that lenders exit fee arrangements, where the fee is altered during a contract term, are often unfair and unclear.
Our view
The criticism is slightly unfair. If a client creates work for a bank why should they not have to pay? We believe Abbey are within their rights to charge, would you work for free?