§ Mr. LazarowiczTo ask the Chancellor of the Exchequer if he will take steps to prohibit the practice of mortgage lenders charging their customers a fee should they move their mortgage to an alternative mortgage lender. [11966]
§ Ruth KellyThere are legitimate reasons for lenders to charge fees, not least the administration costs that are involved in transferring deeds to other lenders, together with the essential correspondence that needs to be entered into between borrower and (both) lenders as well as between lenders. Moreover, there is clear disclosure of these fees upfront in line with the benchmarks set out in CAT standard mortgages. I do not therefore propose to prohibit this practice.