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Mortgage fees jump over 70% in four years

The average mortgage fee has shot up 70.3 per cent in the past four years, according to research from

The data firm recorded an average fee of £899 a year before base rate fell to 0.5 per cent, in March 2009, to its current level of £1,514.

The average two-year fixed fee is £1,595 while the average five-year fixed rate fee is £1,014.

At the upper end of the scale, the largest fee is a five-year fixed rate at 3.79 per cent up to 75 per cent LTV, which carries a fee of £3,990. spokeswoman Sylvia Waycot says: “There is no logical reason why fees should have increased so much. In the space of just August and September alone, they have increased by an average of £42.

“Mortgage administration costs cannot have jumped 70 per cent. Credit searches are no more complex than in previous years, so why are fees so high?

“It could be that lenders are keen to push fees because they are an upfront cost, which means they get the money at the start regardless of fulfilling the full length of a fixed term.”


Moody’s downgrades European Union outlook

Moody’s Investors Service has downgraded the long-term issuer outlook for the European Union from stable to negative, but has kept its Aaa rating. According to the ratings agency, the outlook reflects negative outlooks assigned to Aaa-rated key contributors to the European Union, including: Germany, France, the UK and the Netherlands. The four account for 45 […]

Hodge Lifetime cuts lifetime mortgage rate by 0.3%

Hodge Lifetime is reducing the rate on its lump sum lifetime mortgage by 0.3 per cent, from 6.13 per cent to 5.83 per cent, tomorrow. The product allows customers to pay off up to 10 per cent of their initial loan each year without incurring early repayment charges. Customers can also repay the loan in […]

The Mortgage Mole

Meter’s running Mole’s head is feeling a little sore this morning after a few too many sherries and wonders if Mortgage Strategy contributor Hugh Wade-Jones has any hangover remedies to share. Mole never normally touches the stuff, not since an incident involving ten ladybirds, half a crow and a digital camera, but it’s unclear whether […]

Expectations for Funding for Lending “too high”, says CML

The Council of Mortgage Lenders believes expectations about what the Government’s Funding for Lending scheme can deliver are “too high” and it should only be seen as a “stop-gap solution”. In its fortnightly newsletter, News & Views, the trade body says while the scheme is useful it should not be viewed as a replacement for […]

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk


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  • Rob Knighyt 5th September 2012 at 3:22 pm

    As with all data it needs to be viewed in the correct way. The fees mentioned I would imagine relate to the Buy to Let market products as these carry the highest fees. I agree however that there is no justification for the higher fees, the lenders have a captive audience at the moment so they obviousely feel they can charge what they want.