Govt should step in over mortgage break fees, says Goff

Labour leader Phil Goff is calling on the Government to clamp down on banks charging exorbitant fees to people wanting to break their mortgages due to hardship.

Interest rates have been tumbling over the past few months and are expected to go even lower before the end of the year; last year the floating rate tipped 10 per cent but is currently hovering around 7.

People who refixed mortgages last year can only watch and wait for their terms to end, or pay hefty fees to refinance.

"The banks have locked people in. If you've got a three-year mortgage and you're still paying 9 per cent interest rates and everybody else is paying considerably less, they'll put a hefty fee on for you to renegotiate that mortgage," said Goff.

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Posted: 27 Jan 2009

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