The FSA says most mortgage lenders have dropped controversial mortgage exit administration fees (MEAFs) in response to an FSA Statement of Good Practice released in January.
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 markets at the FSA, says the regulator had achieved its main goal of making costs clear to consumers.
He adds: “Customers will know when they sign up for a mortgage what fee they will pay on exit, or should be given a clear idea of how the fee might be varied fairly.
"We will continue to monitor closely how firms treat their customers in this area."
The FSA advises customers who have been charged a higher exit fee that stated in their mortgage contract should contact the lender for a refund.
The regulator also says customers should examine all fees and interest rates when choosing a mortgage and should ensure exit fees are fully transparent.
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