Beware of the banks home loan fee hike

Friday, November 25th, 2011 - Business Gallery

Beware of the banks home loan fee hikeBeware of the banks home loan

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

Beware of the banks home loan fee hike | twinqu | 4.5