THE Financial Services Authority (FSA) has already warned mortgage lenders that the exit fees for customers who pay off their home loans are too high.

But most lenders still retain the right to increase these fees at any time during your mortgage term. Even though the lenders insist the fees are required to cover their costs, there is a huge discrepancy in the costs charged by different lenders.

The FSA have given firms until March next year to review their policies to ensure that they adhere to the regulators 'Treating Customers Fair' initiative.

So even after this recent warning, along with other warnings about credit card and overdraft fees, why have some lending institutions responded by increasing other types of fees?

Cheltenham & Gloucester have recently started charging £25 for transferring clients’ funds to their solicitors when purchasing or re-mortgaging a house.

Birmingham Midshires Solutions charges its customers £49, Mortgage Trust £50, Platform £45, West Bromwich Building Society £40, Woolwich £35, Coventry Building Society £35 and Portman Building Society £35. Most banks charge £25 for one-off electronic payments.

It actually costs a fraction of this amount for most lenders and next to nothing for clearing bank. Larger mortgage lenders due to the volumes of transaction they carry out must also negotiate what fees they pay as well.

However, not all lenders charge for transfers with this type of transaction. Neither Intelligent Finance or Hinckley & Rugby charge for their transfers.

Some mortgage fees represent a reasonable reflection of the costs involved, but transfer fees, like exit fees, are very steep.

Unfortunately the FSA has delayed its decision on exit fees until the autumn, so it is unlikely that transfer fees will be tackled for some time.

Ensure when you take out a mortgage or re-mortgage you are aware of all the costs involved. You should receive a 'Key Facts' document from your lender or mortgage broker detailing all the costs involved.

These costs will also be reiterated in your mortgage offer.

An independent financial adviser will be able to find out the lowest fees in the market and they will also ensure that the mortgage you take out is the one which best suits your needs.