30 June, 2008
Forbes Solicitors is warning anyone looking at re-mortgaging or buying a property for the first time to fully calculate their finances to avoid being caught out by increasing fee charges.
In the autumn of 2006 only a handful of fixed mortgage products came with an application fee of £750 or more. Currently around a third of the total fixed rate mortgage market now charges an application or administration fee of £750 or more.
Peter Toner, Independent Financial Adviser at Forbes comments, "Lenders have never been less willing to negotiate with borrowers, on top of the increasing applications fees, buyers also need to take into account stamp duty, conveyancing fees and valuation fees. Adding any of these to the loan will mean increased monthly payments throughout the entire mortgage term".
It is vital borrowers consider all fees when considering the different mortgage deals and not just the interest rate. In some cases it may not make financial sense to pick the lowest interest rate if the associated fees outweigh any interest rate savings.
It is now more important than ever for borrowers to seek cost-effective independent financial advice, they should also quiz their existing lenders about their full range of deals available.