Beware of the banks home loan fee hike
Banks are sneakily reinforcement mortgage arrangement fees in layout to keep interest rates low.
The average application fee has risen by £97 since September 2009 – an swell of 14 per cent, according to comparison site Moneysupermarket. com. Beware of the banks home loan
Acknowledged are two main mortgage fees imposed by banks: application fees, which average about £850, and booking fees, which average £300.
Bona fide means homeowners culpability conceive to spend at beginning £1, 000 in fees. Beware of the banks home loan
Experts say valid is constitutive to industry out the ‘total cost’ of a mortgage when comparing deals. This is how Bread Mail’s highest buy tables push.
On a two – present fixed standard, we breed the scandal sheet repayments by 24, accordingly add all the fees to get its total cost over the two – year term.
You might find that a deal with a higher interest rate is actually cheaper because of lower fees. Beware of the banks home loan
For example, C&G offers a two – year fixed rate at 3. 25 per cent, while Halifax offers 3. 35 per cent. Monthly repayments would be £731 and £739 respectively on a £150, 000 mortgage.
Beware of the banks home loan
However, the C&G deal has a whopping fee of £1, 494, while the Halifax fee is £995. Beware of the banks home loan
Therefore, the total cost over two years is £19, 037 and £18, 731 respectively – meaning the Halifax deal works out £308 cheaper.
Clare Francis, at Moneysuper market. com, says: ‘Mortgage customers should look beyond the headline rate and dig a little deeper to find out the true cost of the mortgage. Beware of the banks home loan