Mortgage deals often come at a price.
08 September 2009
Potential homebuyers hoping to secure a fixed-rate mortgage face paying an inflated set-up cost in comparison to previous years, it has been suggested.
Recent research shows fees of up to £2,499 are being asked on almost half (49 per cent) of all mortgages.
This represents a 14 per cent rise in the number of fixed-rate home loan deals requiring a percentage charge, according to the moneyexpert.com study.
Commenting, broker Alexander Hall''s chief operating officer Andy Pratt stated lenders are looking to pick and choose who they give loans to by "setting the bar quite high".
"Funding is still short of where it needs to be - due to liquidity - and so banks and the lenders have got a limited amount of money to lend," he explained.
Mr Pratt added they are attempting to lend to the customers perceived as being low-risk.
Bank of England figures announced this month show the total number of new mortgage approvals in July was 50,123 - a rise on June''s 47,891.
Useful Links and Frequently Asked Questions
Loans
Debt Management
Financial News
Faq's