An exit fee (also called a deeds release fee or mortgage discharge fee) is a small administrative charge that some lenders apply when your mortgage comes to an end — whether because you have repaid it in full, remortgaged to a different lender, or sold the property. The fee covers the administrative cost of closing the mortgage account and releasing the charge on the property with the Land Registry.
Exit fees are typically modest, ranging from £0 to £300, with most lenders charging between £50 and £200. Some lenders have abolished exit fees entirely. The exit fee is different from an early repayment charge — it is a flat administrative cost, not a percentage-based penalty for leaving a deal early.
The exit fee should be disclosed in your mortgage offer document and Key Facts Illustration (KFI). While it is a relatively small cost, it is worth factoring in when comparing the total cost of remortgaging or paying off your mortgage.
You remortgage away from your current lender. They charge a £125 exit fee for closing your account and releasing the deeds. This is deducted from the final payment or charged separately. Combined with legal fees and any arrangement fee on the new mortgage, it forms part of your total switching costs.
Key Points
- An administrative charge for closing your mortgage account
- Typically £0 to £300 — much smaller than an early repayment charge
- Charged when you repay, remortgage, or sell the property
- Some lenders do not charge an exit fee at all
- Different from an early repayment charge, which is a percentage-based penalty