Excessive bank charges are never far from the headlines these days. Many banks have found themselves having to pay back some of the money generated by these controversial charges. This has caused a big uproar in the industry because many feel that charges such as those associated with unauthorised overdraft usage is justified. There was a report of one businessman who was successfully achieved a refund of almost £36,000 in charges from the NatWest bank over a period of time - Charges which he claimed were unlawful.

But what about in the case of a mortgage where a higher level exit fee is being charged than originally stated when the borrower took out the mortgage?

Not so often however do we hear about the controversial subject of mortgage exit fees. Recent guidance from the FSA could result in many of the lenders having to go down the same road as the banks in respect of refunding charges to their customers/ex-customers - This is especially relevant where those exit fees are higher than the level that was stated in the original mortgage.

It is becoming more common for borrowers to seek refunds from charges incurred from exit fees.

Lenders do of course have to make money however this should be carried out in a way that it clear and transparent to the borrower. The Financial Services Authority's attitude to Mortgage Exit Fees is clear - Dealings with customers should ensure that these charges are made clear and open. This has sent a warning throughout industry to lenders to get their act together or face.

The council of Mortgage Lenders has commented by saying that they are not sure whether recent intervention from the FSA is going to trigger a mass reduction in mortgage exit fees. Every lender has different costs and it would be incorrect to expect a uniform exit fee structure across the board.

In the current climate of ever rising interest rates, there is a very real trend with respect to lenders raising their associated fees in an attempt to ensure that the interest rates still look appealing. This is evident in the case of mortgage exit fees also.