Due to high competition in the mortgage market, the number of products available has soared, however you still want to know that you are getting the best deal.
It is vital to assess the overall value of a mortgage, i.e. the initial rate and any fees for obtaining this rate. Knowing what the true incentive for any fees, these fees could be labelled as an “Application”, “Mortgage”, “Arrangement” or a “Product” fee, is important. A survey from moneyfacts.co.uk has found that the average Application/Mortgage/Product fee is now £956 – the highest amount for 21 months.
“The current mortgage market boasts some of the lowest rates on record, which is great news for borrowers, but the increase in average mortgage fee clearly shows that some of these headline-grabbing rates are being compensated for elsewhere…Both providers and borrowers are keen to focus on the interest rate, which could mean that the costs of a large fee are not factored in. But high fees can have a big impact on the cost-effectiveness of a deal, particularly when they are added to the mortgage advance, which increases the amount borrowed and pushes up the size of the monthly repayments” explained Charlotte Nelson, finance expert at Moneyfacts.
Our Mortgage Advisers here at Turney & Associates have a vast experience and understanding of the mortgage business. To discuss your mortgage requirements and queries further, please feel free to contact us and we’ll be more than happy to discuss your case further with you.