View more on these topics

Mortgage fees rise in competitive market

Mortgage fees could be as high as £2,700 by 2016 if they continue to creep up at the pace they’ve sustained over the past 10 years, according to Moneyfacts.co.uk.

It says 10 years ago fees averaged £300. Today this has trebled to £900. Combined with Stamp Duty and further interest rate rises, it says changing home or switching lenders will become increasingly costly.

A spokeswoman for Moneyfacts.co. uk says: “With competition driving down profit margins on rates, lenders have sought to recoup income by means of higher fees. Not only have flat fees risen but there is also a trend for lenders to use percentage fees – now up to 2.5% of the mortgage advance.”

Recommended

AToM claims it pays top proc fee

All Types of Mortgages claims it pays brokers one of the highest proc fees in the industry. Internal research by AToM, shows on average it pays a higher proc fee than the industry norm. The research also highlights the wide variation in fees paid by packagers for the same products from the same lenders.

Builders should keep locals sweet

The need for new housing is well documented. And the need to protect the character of local areas from the negative effects of new housing is equally well documented.

Death of desktop systems predicted

DesKtop-based sourcing systems have reached the end of the road and should be “consigned to the dustbin of history”, says Network Data. The network recently revealed its sourcing system mortgageLink is being considered by several firms for acquisition. But one source commented: “Who would want to buy it?” Richard Griffiths, managing director of Network Data […]

FSA urged get tough on ads

Treasury Select Committee chairman John McFall has called on the Financial Services Authority to take a more robust stance on misleading financial advertising.McFall has written to Sir Callum McCarthy, chairman of the FSA, outlining his concerns that the regulator gives too little detail about which banks and insurers are being investigated for breaking the rules.He […]

Newsletter

News and expert analysis straight to your inbox

Sign up