Lenders drop MEAFs after FSA review

The FSA expected firms to review how they treat future customers and to provide a basis for past consumers to seek compensation by the end of July. A sample of some of the biggest firms in the mortgage market found that most lenders had either dropped exit fees or opted to charge a fee which cannot be varied throughout the lifetime of the mortgage, according to the FSA. Other lenders chose to charge a MEAF which reflects the administrative cost of exiting a mortgage and which can only be varied for reasons clearly explained at the outset. Clive Briault, managing director of retail market...