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Mortgage fees rise by twenty per cent
23 July, 2008
Potential borrowers are set to face application fees that are on average 20% higher than a year ago, according to analysis from mform.co.uk.
The research revealed that of the best-buy mortgages reviewed in August 2007, the average application fee was £738.33, but this had risen to £889.69 by July 2008. However, there were some bigger increases than this, with the average fee for a best-buy three year fixed deal rising from £590.40 to £938 – an increase of 58.8%. However, between August 2007 and July 2008, the fees on the best-buy discounted rate mortgages only increased from £857.2 to £951.62 – a rise of 11%.
Francis Ghiloni, mform.co.uk, marketing and business development director, said: “With the current challenges facing the mortgage market, it is not surprising to see that fees have risen by so much. This means that it has never been more important to look at the true cost of a mortgage, taking into account the interest rate but also any fees and charges that you have to pay.”