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Mortgage fees could reach £2,700 by 2016 has investigated the rapid growth in mortgage fees over the last 10 years, and predicts that mortgage fees could be as much as £2,700 by 2016 if the trend continues at the same rate.

A spokeswoman for Moneyfacts, says: “Ten years ago, mortgages fees averaged £300, today this figure has trebled, to an average cost in excess of £900. Combine this with the rising stamp duty burden, and the possibility of further interest rate rises, and the result will be that moving home or changing mortgage providers will be an even more costly exercise.

“With competition in the mortgage market 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.

“There is also an alterative motive for the lenders to generate additional fee income. When predicting business performance forecasts to shareholders, fee income can be used to predict growth, whereas interest turn is excluded.”


First-time buyer homes could hit £1m mark in 18 years

First-time buyers could be facing a grim future, as new research from Stroud & Swindon shows first-time buyers could be forced to pay £1m for their first home in just under 18 years. Worrying research from the society shows that if house prices and incomes continue to follow the current growth trend, first-time buyers will […]

Absolutely Training launches e-learning training course

Absolutely Training has created a training package designed to help financial and mortgage advisers develop their compliance with the regulatory requirements set out by the Financial Services Authority.The financial and mortgage training package is an e-learning training course that ensures financial and mortgage advisers meet regulatory commitments than just tick the box. Courses included within […]

A&L launch specialist products

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City of London residents most polluting

The Liberal Democrat Party has revealed the City of London emits 55 times more carbon dioxide per head than Hackney. Research shows that the UK is emitting almost four times the current global average emissions, with an average of around 9.2 million tonnes of carbon dioxide per person. The top five areas producing the most […]


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