A ‘sealing fee’ is sometimes also referred to as a ‘discharge fee’, ‘redemption fee’ or ‘exit fee’. The fee, when charged, is usually between £100 to £300 and is stated in your mortgage’s terms and conditions.
The fee is supposed to cover the administrative process involved around sending you your deeds and closing the mortgage account. It should not be confused with an ‘early redemption fee / penalty’ which is entirely different and might be included in your mortgage in the event that you pay off your mortgage early or change mortgage provider or type.
There have been some criticisms of the scale of charges relating to sealing fees in recent years and some have been successful in having their charges reduced or refunded. Although the fee is supposed to be for closing your account, recently,some lenders have taken to charging it when you initially set up your mortgage!
To speak to a mortgage adviser contact us on 01628 507477.
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