Mortgage fees on the up, says mform

www.moneynews.co.uk > Mortgages > Mortgage fees on the up, says mform

Mortgage fees on the up, says mform

Tue 28th Nov 2006

Mortgage application and exit fees have more than doubled over the last few years, according to new research from the mortgage comparison website mform.

It reveals that the cost of applying for a mortgage has risen from £281 to £634 in the last three years, representing a rise of 126 per cent.

And exit fees have also rocketed, with the cost of leaving a mortgage arrangement rising by 91 per cent, from £106 to £202, over the same three-year period.

The website says that with lenders charging increasingly competitive rates of interest in a bid to attract customers, they are having to push up application and exit fees in order to make up the lost revenue.

This is why consumers should be wary about going for mortgages with low interest rates, as they could get stung by sky-high fees.

Eamonn Rice, chief executive of mform, explains: "When choosing a mortgage, it is very important to look beyond the headline rate. Some of those with the lowest rates have the highest application and exit fees and the least flexible terms and conditions.

"You need to consider a number of factors when choosing a mortgage, including its true cost, its features such as the ability to make early repayments and the service levels of the lender."

Related News : Mortgages
	Brits 'failing to grasp the importance of an interest in mortgages'
	BBA highlights mortgage lending growth
	Are interest-free mortgages a bad idea?
	Buy-to-let mortgages are 'more profitable'
	House price performance to impact lenders' criteria
	More Brits 'to choose long-term mortgages'
	Offset mortgages 'are the future'
	UK house prices 'set to fall'
	Hybrid mortgages 'are a good deal' for FTBs
	UK public expects house price increase