Borrowers cautioned over non-refundable fees

Website mform.co.uk has said that borrowers should be aware of the risk of being hit by non-refundable fees from lenders following the publication of new research.

A study by the firm has revealed that, with regulators increasingly looking to clamp down on exit fees, some lenders are now imposing charges applicable even in cases where applications are not approved.

As much as £750 is being charged in some cases on a typical loan of £150,000, the company added.

"The picture on fees is becoming more and more confused and the issue of non-refundable fees adds to the confusion," commented mform.co.uk chief executive Eamonn Rice.

"Most borrowers will be unaware of whether fees are non-refundable and many will never be affected if their loan goes through.

"Lenders will argue that the non-refundable fee is justified and that it only applies in very limited circumstances," Mr Rice added.

The Council of Mortgage Lenders has today revealed that first-time buyers now spend an average of 3.39 times their annual salary in getting a mortgage.


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