Your lender can charge a mortgage exit fee when your mortgage account closes, to cover the administration of ending the loan.
That can happen when you repay in full, remortgage or reach the end of the term. You may also see it called a deeds release fee, redemption fee or discharge fee, and it is separate from an early repayment charge.
Not every lender charges one. HSBC lists £0 for exiting a mortgage, and Nationwide stopped charging an exit fee on 3 March 2025. Virgin Money still lists £99 for some mortgages.
Your lender sets the fee when you take out the mortgage and writes it into your offer. The time to look at it is before you sign, because you cannot change it when you come to leave.
Mortgage exit fee key figures at a glance
Published lender tariffs show exit fees running from £0 to £99 at the lenders listed below, with the figures checked in October 2026.
| Figure | Value | Period | Source |
|---|---|---|---|
| HSBC administration fee for exiting a mortgage | £0 | At the time of writing, October 2026 | HSBC mortgage fees |
| Nationwide mortgage exit fee | Not charged | Since 3 March 2025 | Nationwide fees and charges |
| Virgin Money mortgage exit fee | £99, varies with when you took your product | At the time of writing, October 2026 | Virgin Money tariff of mortgage charges |
| Halifax repayment administration fee | Up to £50 on older mortgages | Withdrawn for applications from 31 July 2007 | Halifax tariff of mortgage charges |
| HM Land Registry applications that could be lodged digitally | All except first registrations | By 30 November 2022 | HM Land Registry digital by default update |
What is a mortgage exit fee?
A mortgage exit fee is the charge your lender makes for closing your mortgage account and releasing its legal claim on your home.
Lenders use different names for it, such as deeds release fee, redemption fee, closure fee and discharge fee. Halifax lists its version as a repayment administration fee.
Every fee you owe should appear in your mortgage offer, so that is the first place to check.
Why it is called a deeds release fee
The name comes from the days when lenders physically held your property title deeds.
Deeds prove who owns a house. A lender would register a legal charge against your home and store the paperwork until you repaid the loan. When you did, staff had to find the deeds, remove the charge and send everything back, which is where “deeds release fee” comes from.
Most of that work now happens electronically.
In September 2022, HM Land Registry said all applications other than first registrations could be lodged digitally by 30 November 2022. It called this being digital by default. Some lenders kept the fee as a general administration charge, even though the paper chase has largely gone.
When do you pay a mortgage exit fee?
You pay a mortgage exit fee, if your lender charges one, when your mortgage account closes.
That happens in one of four ways:
- you reach the end of your mortgage term
- you repay the whole mortgage early, for example when you sell
- you remortgage to a new lender
- you move the loan to another property
Lenders differ on the first of these. Virgin Money says it does not charge the fee when your term ends naturally. Barclays’ tariff of mortgage charges, however, lists the end of the term as a trigger. Barclays also applies it when an existing mortgage has to be redeemed, such as on a transfer of equity or when porting.
Switching lender is a common trigger. Your new lender and its solicitor need an exact figure, so they ask your current lender for a redemption statement.
What a redemption statement shows
A redemption statement, such as a Halifax redemption statement, shows exactly what you must pay to clear your mortgage. Lenders set out their own layouts, but expect to see these items:
- your outstanding mortgage balance
- any interest that has built up
- any early repayment charge
- any other fees or charges due, which can include the exit fee
- the total needed to repay the mortgage
Ask which date the total covers, because it can change if your completion date moves. If the statement shows an exit fee you did not expect, check your mortgage offer and your lender’s tariff before you pay.
How much is a mortgage exit fee?
Among the lenders checked in October 2026, a mortgage exit fee runs from nothing to £99.
What these lenders list
At the time of writing, HSBC lists an administration fee of £0 for exiting a mortgage on its mortgage fees page. Nationwide says on its fees and charges page that it has not charged a mortgage exit fee since 3 March 2025.
Other lenders still do charge.
Virgin Money’s tariff of mortgage charges lists £99 at the time of writing. It says the amount depends on when you took your product, so your offer documents give the real figure. Halifax shows up to £50 as a repayment administration fee on its charges page. It says it withdrew the fee for mortgages applied for from 31 July 2007. Barclays gives no set amount and points you to your mortgage offer.
Why your figure may differ
A lender’s website describes its current practice, and your mortgage may predate it.
Virgin Money ties its amount to when you took your product, and Halifax’s fee applies only to older mortgages, so the number online can differ from the one in your offer. Your redemption statement shows what you actually owe, and a call to your lender before you apply for a new deal settles any doubt.
Other costs when you repay
Some lenders charge a mortgage account fee when your account opens that already covers the exit fee. Check the wording in your offer before assuming you will pay twice.
Your solicitor or conveyancer may also charge separately for the legal work of repaying the mortgage and discharging the lender’s security. Lender tariffs make clear that this is a different charge from the exit fee.
Is a mortgage exit fee the same as an early repayment charge?
No. A mortgage exit fee is an administration charge for closing your account. An early repayment charge (ERC) compensates your lender for the interest it loses when you repay during a deal period. You might pay one, the other or both, depending on your lender and when you repay.
What the rules say
FCA rules say an ERC on a regulated mortgage must be a cash value and a reasonable pre-estimate of the lender’s costs from early repayment.
You can read the rule in MCOB 12.3 of the FCA Handbook. Those rules do not cover unregulated mortgages such as buy-to-let. The Financial Ombudsman Service says the legal requirements are similar, though. It expects an ERC to be clearly set out in the loan agreement and to cover the lender’s costs.
See the Ombudsman’s guidance on early repayment charges.
How one lender works it out
ERCs work differently from lender to lender.
HSBC’s mortgage fees page shows one method, at the time of writing. On fixed rates it charges 1% of the amount repaid early above a 10% overpayment allowance, for each remaining year. The total is capped at 5% of the overpayment.
For example, say your lender charges an ERC of 2% and you repay £500,000 early. The ERC would be £10,000, compared with an exit fee of around £100. These figures are an illustration only, not a quote from any lender.
You can also meet an ERC while you still have the mortgage. If you make an overpayment larger than your lender allows, it can charge the ERC on the excess. Our guide to early repayment charges explains how they are calculated.
How can you avoid a mortgage exit fee?
You usually cannot avoid a mortgage exit fee if your lender charges one. In getting a new mortgage you can choose a lender that does not charge one, though. Two of the lenders in the table above charge nothing.
A deal with an exit fee can still cost less overall than one without. Add up every mortgage fee alongside the interest rate before you choose. If you expect to sell or remortgage within a few years, give the exit fee and any ERC extra weight in that sum.
An independent mortgage broker can compare the exit fee, the ERC and the product fee across lenders for you. Tell them how long you plan to keep the mortgage, because that changes which deal costs least.
Do lenders still keep title deeds?
Mostly no.
Where your home is registered with HM Land Registry, the lender’s charge sits digitally on the official register. There is no bundle of paper deeds to hold or hand back. Older mortgages can differ, so check your offer or ask your lender if you are unsure.
Talk to an independent broker before you choose a mortgage
A mortgage exit fee is small next to an early repayment charge, but it still belongs in the full cost of a deal. If you want help comparing exit fees, early repayment charges and product fees, contact Respect Mortgages. We will introduce you to an independent, whole-of-market mortgage broker.
Frequently Asked Questions
If your lender charges one, yes, because selling your home means repaying the mortgage and closing the account. Whether you also owe an early repayment charge depends on where you are in your deal: it can apply inside a fixed or tracker period but not after it ends. Ask your lender for a redemption statement before you accept an offer, so the full cost is clear when you agree a completion date.
No. Some lenders no longer charge one, and the key figures table above lists examples. Others still charge a flat fee, so read your own lender’s tariff of mortgage charges and your mortgage offer to see which applies to you.
Yes, they describe the same charge. Lenders also use names such as redemption fee, closure fee, discharge fee and repayment administration fee. If your offer uses a different name, the wording that matters is the fee payable when your mortgage account closes. Neither a solicitor’s charge nor an early repayment charge counts as a deeds release fee, because both are separate.
Choose a lender that does not charge one before you take out the mortgage, because the fee is fixed in your offer. If you already have the mortgage, ask your lender whether the fee applies to your product, but do not expect it to be waived. Then add up the exit fee, any early repayment charge and the product fee for each deal you compare, since a deal with an exit fee can still cost less overall.
It can be. A redemption statement lists your outstanding balance, any interest that has built up, any early repayment charge and any other fees or charges due, and the exit fee falls under the last of these. Check that it appears on the statement and matches the amount in your mortgage offer. If the figures differ, ask your lender to explain the gap before you complete.
Look in your mortgage offer first, then your lender’s tariff of mortgage charges and your annual mortgage statement. If you are repaying soon, your redemption statement lists any fees due, so you can check the exit fee before you pay. If you cannot find it, your lender can confirm which fee applies to your product.
