In good news for our Sneaky Fees and Charges campaign, Barclays has announced that it has simplified its mortgage fees.
Over the last 18 months Barclays has reduced the number of fees and charges on its mortgages from 21 to six.
The changes include:
- £150 withdrawal fee removed
- Final Repayment Charge reduced from £275 to £80 for new mortgages
- £25 charge for additional requests for information removed
- £100 arrears litigation and enforcement fees removed
- £150 further advance admin fee for new mortgages
Our research published last month found that there were more than 40 different fees and charges across the market.
We've been campaigning for George Osborne to make it easier for people to compare the cost of mortgages.
In a win for our campaign, the Chancellor announced in the Autumn Statement on 3rd December that he has asked the industry to work with Which? to develop new guidance on how fees should be displayed and charged. We will report back to the Chancellor within six months.
Payday lenders have refused to act following our legal letters to reduce their default fees. We're now calling on the financial regulator to intervene.
We're calling on the Financial Conduct Authority (FCA) to get tough with the payday lenders we believe are charging excessive fees for late payments. We wrote to the lenders in January 2014 but have received no commitment for action from the lenders themselves.
Which? executive director, Richard Lloyd, said: 'It's outrageous that lenders are charging excessive fees which tip people into further debt.'
Find out more about our Clean up Credit campaign