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.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, but we estimate it to be £399.

Mortgage Required Ltd, Finance House, 5 Bath Road, Maidenhead, SL6 4AQ is authorised and regulated by the Financial Conduct Authority reference 573718 at www.fca.org.uk.

The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients. More detail can be found on their website: www.financial-ombudsman.org.uk

Call: 01628 507477