Mortgage lenders push up fees
Mortgage lenders are pushing up fees in order to balance falling interest rates, according to latest research.
Figures show that across the industry, there was a £97 increase in the average mortgage arrangement between July 4th and August 6th this year.
The average cost of arranging a mortgage has now risen from £926 to £1,023 in a year.
This means that on a £150,000 repayment mortgage, a £100 increase in fee equates to an additional 0.06 per cent increase in the rate.
This is encouraging more people to stick to renting property in London in order to avoid high charges.
"Research conducted by Moneyfacts.co.uk has shown that some lenders have increased rates and fees and not brought either back down," said Darren Cook, mortgage expert at the website.
He went on to say that other lenders have reduced rates but in turn have increased fees, with some lenders switching from charging a fixed fee to a percentage fee.
Published 7th August, 2008
© 2008 Estates IT Limited
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Mortgage lenders are pushing up fees in order to balance falling interest rates, according to latest research.