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More Pain For Borrowers As Mortgage Fees Rise

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8575073/More-pain-for-borrowers-as-mortgage-fees-rise.html

Mortgage borrowers struggling with falling house prices and strict lending criteria have been dealt a further blow as research shows that application fees have risen 13pc in two years.

The research coincides with the latest mortgage lending data from the Council of Mortgage Lenders that showed that the amount of home loans had fallen to 40,900 in April from 41,900 a year earlier.

Analysis from moneysupermarket.com shows fees for fixed and tracker mortgage products have increased by over 13pc since September 2009 making it more difficult for borrowers to compare the true cost of mortgages.

The analysis also shows products with the lowest headline rates are not necessarily the best value over the term of the deal. Once fees are factored in, a product with a slightly higher rate but lower set-up costs may actually prove cheaper.

For example, the lowest two-year fixed rate is from Santander at 2.79pc, however, this includes a combined booking and arrangement fee of £1,995, meaning the total amount to be paid back over the two years for someone borrowing £150,000 is £18,676.

The same amount borrowed over two years with Royal Bank of Scotland at a rate of 2.99 and a fee of only £499, would cost £17,552 – a saving of £1,124 over the two year period, despite the interest rate being 0.20 percentage points higher.

It's all to confuse the borrower and make comparisons difficult, the bankers don't want a free market they want confused suckers.

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http://www.telegraph...-fees-rise.html

It's all to confuse the borrower and make comparisons difficult, the bankers don't want a free market they want confused suckers.

I thought the idea behind intermediary sites like moneysupermarket.com was to make it more straightforward, and not add to the complication!

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I hate this type of story - are the general public total morons?

What they are saying this that the fees have increased - that's been noticed for a long long time.

They are also saying that if you look at the total costs of a mortgage - the £1995 fee that they stick on costs you money and maybe the "cheapest" deal isn't actually all that cheap! Who would have thought it!

Anyway, I'm off to Tescos before they close to buy all the BOGOFs and special offers I can get my hands on. :)

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I hate this type of story - are the general public total morons?

What they are saying this that the fees have increased - that's been noticed for a long long time.

They are also saying that if you look at the total costs of a mortgage - the £1995 fee that they stick on costs you money and maybe the "cheapest" deal isn't actually all that cheap! Who would have thought it!

Anyway, I'm off to Tescos before they close to buy all the BOGOFs and special offers I can get my hands on. :)

I bet the fees go straight to the bank and the rest of the shit goes out the back door (at least they hope it does).

Massages the bank's figures so the bonuses can keep rolling.

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This is where I stopped reading:

Mortgage borrowers struggling with falling house prices

Yes, borrowing less really is a struggle.

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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