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Average mortgage application fee up 20% since 2009

Fees for fixed and tracker mortgage products have increased by over 20% since September 2009, according to MoneySupermarket.com.

The comparison site says products with the lowest headline rates are not necessarily the best value over the term of the deal as once fees are factored in, a product with a slightly higher rate but lower set-up costs may actually prove cheaper.

For example, the lowest two-year fixed rate mortgage is from HSBC at 2.64%, however adding the combined booking and arrangement fee of £1,999 means the total amount to be paid back over the two years for someone borrowing £150,000 is £18,404.20.

The same amount borrowed over two years with Bank of Ireland at a higher rate of 2.78%, and a fee of only £799, would cost £17,461.48 – a saving of £942.72 over the two year period, despite the interest rate being 0.14% higher.

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UK no longer in recession

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Five ways to make your employee focus group session a success

by Debra Corey, group reward director  You just planned and booked what you thought was the perfect vacation for you and your family. You call everyone together to share the great news and instead of receiving sounds of glee and delight, you receive groans and complaints.Your youngest says: “I hate beaches, didn’t you know that?” (You think to […]

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  • Fran brogan 11th June 2012 at 6:26 pm

    With inflation at about 5% we are saying no real change in the real amount – no story and therefore no issue.