"Shocking level" is how finance expert Charlotte Nelson describes the price hikes on mortgage rates these days.
Reports at Express.co.uk reveal how some mortgage lenders can become very sly these days by not showing the real cost of their deals. This is done by raising the arrangement fees to alarming heights. Some mortgage lenders charged up-front mortgage fees to thousands of pounds. A lot of these deals are even more expensive than the first time they were lenders. It rises up to its highest level in the last two years. Ordinary borrower's fee amounts to €1,900 on a mortgage fixed for two years and some deals even charge higher than that. Some value loans are charged to a shocking €7,499.
In 2014, the average rate for a fixed mortgage is only €889 but it skyrocketed to €956 these days. The report although said that the possibility of getting a mortgage fee-free is still around the corner. Nelson warned borrowers to examine first the real cost of mortgage to ensure that the deal is right for them. This includes checking fees and incentive packages.
Mortgage Broker, Simon Tyler of Mortgage Management, said that another downside of the increase in fees is that it will discourage borrowers that are still drowned to pricey lender's SVR or Standard Variable Rate from changing elsewhere. He added that the expensive arrangement fee is not really a bad thing. The bad thing is the way some lenders use them to twist rates that can become confusing to the borrower.
Love Money suggested that lenders should check small details first before jumping in the deal. Some of the deals they might find best are not the best after all and might contain certain restrictions. By being restrictive, lenders can actually tailor their deals to a niche market that they themselves understand.
