British homeowners 'paying £1,788 too much for mortgages'

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British homeowners 'paying £1,788 too much for mortgages'

Tue 28th Jul 2009

The average British homeowner is paying £1,788 too much on their mortgage repayments every year, it has been revealed.

The Daily Mail has performed research that shows banks are failing to pass on borrowing fee cuts, resulting in inflated prices for mortgage subscribers.

It points out that in 2008, banks added an average of 0.5 per cent on to mortgages as well as borrowing costs, but at the present time, this figure has risen to 2.61 per cent as they argue that borrowing losses made amid the recession need to be recouped.

Chancellor Alistair Darling called talks with bank executives this week in order to demand an explanation.

He stated afterwards: "Of course there are arrangement fees that need to be paid and so on, but I am concerned to make sure that banks do not charge any more than is absolutely necessary."

Data from the Council of Mortgage Lenders revealed that in June, mortgage lending hit its highest levels since December as a collective £12.3 billion was granted in the UK.

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