Buyers Beware – Rising Mortgage Fees

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mortgage fees

Buyers should beware of the escalating mortgage fees and find a good broker.

Mortgage fees on fixed-rate products have risen 5.6% over the past year, with an average deal amount of £ 1,075.

Meanwhile, the market share in which fixed-rate products are offered commission-free declined 5% over the same period to 35%.

This message is from Moneyfacts.co.uk, which warns that lenders can raise fees to make a profit after a fixed-rate war.

The company’s latest report says it could also be related to a rebound below 1%. mortgage since these initial rates, while appealing and low, may also carry the highest fees.

“Borrowers may have to search a little harder if they want to minimize mortgage costs or secure a flat rate mortgage with no commission,” says Eleanor Williams, financial expert at Moneyfacts.co.uk.

“Our latest data shows that the current average fixed mortgage rates across all LTV for transactions with commission (3.08%) and for transactions without commission (2.87%) are more than 0.50% higher than this once last year. “

Key findings include:

  • At £ 1,075, the average commission currently charged on a fixed rate mortgage deal (excluding free products) is up £ 57 over last year. However, it is down £ 6 compared to April when it was £ 1,081, the highest reported by Moneyfacts since November 2012 (£ 1,095).
  • The market share offering fixed-rate mortgage deals that do not charge a commission fell from 40% in June 2020 to 35% earlier this month.

mortgage fees

“These changes reinforce the need for borrowers to enlist the support and advice of a qualified broker who can help estimate the true value of a transaction by carefully examining whether it is profitable to pay a commission or tolerate a slightly higher initial cost. evaluate and consider what incentives might be important to their clients, ”adds Williams.

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