Low, low fees at Ecology Building Society
Tuesday 27 February 2007
Ecology's administration and exit fees treat customers fairly...
Ecology Building Society has been charging low fees for many years to the delight of its borrowers and has no current plans to increase them. The Ecology's administration fee of £150 is payable upon application for a residential mortgage, whereas it is not uncommon for lenders to charge up to £999* for similar deals! Ecology requires the administration fee to be paid up front, but it is refundable in whole or part if the mortgage application does not proceed. The majority of lenders not only charge much higher administration fees, but as they allow them to be added to the mortgage advance, the amount repayable on the loan increases because the borrower pays interest on the fees debited to their account.
Exit fees (MEAFs) have attracted the attention of the FSA and rightly so, as they can be very high and typically range from £125 to £295*. Compare that to the £75 Ecology charges, unchanged in four years. Not only that, the Ecology does not impose a higher lending charge (HLC) and also keeps its valuation fees low as well.
People who are taking out a mortgage have a lot to consider. Moving home is stressful enough, without having to examine every detail of a new mortgage to ensure that there are no hidden charges. The true cost of a mortgage offering low initial interest rates can be a lot higher than anticipated, especially once fees and the reversionary interest rate are included in the calculation.
The Ecology's 10 year residential mortgage on the other hand took third place in the 2006 What Mortgage Awards Best Value Building Society category and sixth in the Best Value Lender category, proving that Ecology provides exceptional long term value.
Ecology Building Society is committed to Treating Customers Fairly, which includes keeping all mortgage administration fees realistic and in line with operational costs.
* Source: Moneyfacts February 2007
