Application fees rise by 15% in 18 months
Share
Mortgage application fees have increased significantly over the last 18 months, research from moneysupermarket.com shows.
Data from the comparison website reveals the average application fee has increased by around £100 between September 2009 and March 2011.
Over the period, fixed product application fees rose by £97 on average, an increase of 14%, while fees for tracker deals increased by £118, a hike of 15%.
Moneysupermarket.com says in recent years many lenders have been increasing application and booking fees in order to offer lower headline rates while maintaining margins.
The analysis shows booking fees have risen marginally over the last 18 months, by £9 for fixed products and £7 for tracker products.
Clare Francies, mortgage spokeswoman at moneysupermarket.com, says the different pricing structures used by lenders can be very confusing for consumers.
She says: “It’s vital that prospective mortgage customers look beyond the headline rate and dig a little deeper to find out the true cost of the mortgage, otherwise they may end up paying back more than they bargained for.
“People often forget to look at the total cost and simply focus on the interest rate and what their monthly repayments will be when comparing mortgages. They fail to factor in the impact of the fee.
“Borrowers need to shop around to make sure they get the right mortgage to suit their needs.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
