Unfair Mortgage Fees

Dominic Littlewood
Mortgage Exit Admin Fees

Dom explains how mortgage lenders hiked up charges of Mortgage Exit Administration Fees before the Financial Services Authority deemed this unfair.

A Mortgage Exit Administration Fee (MEAF) is the fee paid when you change mortgage provider or pay off a mortgage. This isn't an early redemption fee - the penalty for leaving a special deal early - but a straight admin fee paid by everyone.

MEAFs go by a number of names including deed release fees, sealing fees, final redemption fees, final administration fees and discharge fees


A [MEAF] used to be about £50. But some lenders are starting to charge loads more than what they first said they wouldThe average cost of a current MEAF is around £200 - with some being as high as £295.

The average cost of a MEAF around a decade ago was around £55.

Lenders initially justified the increase by claiming the variation clause in their terms and conditions allowed them to put up the fees as they wished; whatever the original contract said.

In January 2007, The Financial Services Authority (FSA) ruled that some lenders had increased their fees unjustifiably and the variation clauses didn't justify the increases.

Up to five million borrowers may have paid extra MEAF charges that can be claimed back.

Consumers can claim back the increase in fees if the admin fee in the original contract is different to what they were actually charged.

MEAFs are entirely different to early redemption charges which are penalties for exiting a mortgage when you are locked in to a special deal like a fixed interest rate. Early redemption charges can run into thousands of pounds and these can't be claimed back.

Contracts regarding MEAFs have now changed and many new mortgages may not have MEAFs you can claim back.