RSS FeedsBig increase seen in mortgage fees this year
24/07/2008
Over the past year, mortgage fees have seen a huge leap with figures up by up to twenty per-cent, that’s a massive one fifth.
Research carried out by mform.co.uk, a mortgage comparison website suggested that there has been a rise in the average best-buy mortgage from £738.33 in August of last year, compared to £889.69 in July 2008.
Figures for arrangement fees on best-buy two year fixed rate mortgages have stayed high and almost stagnant, with figures falling by 3% in August 2007 compared to July of this year. On the three year best-buy fixed rate mortgage, there has been a substantial increase in fees, which are up by 59%.
These increases in mortgage fees come as no surprise with the UK economy being in an unstable state and the housing market looking gloomier by the day.
“With the current challenges facing the mortgage market, it is not surprising to see that fees have risen by so much” said Frances Ghiloni, of mform.co.uk. He went onto say that, “This means that it has never been more important to look at the true cost of your mortgage, taking into account the interest rate but also any fees and charges that you have to pay.”