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cashinmattress

Mortgage Fees Shoot Up To 25 Year High As Rates Drop

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Mortgage rates might be at historic lows but home loan fees are at their highest in 25 years at an average of £1,522.

Research by comparison site Moneyfacts.co.uk shows mortgage arrangement fees have risen by £112 this year to reach the record high. In January the average fee was £1,410 compared to £1,522 in April.

As mortgage rates have fallen across all loan-to-value (LTV) deals, the fees have risen. In January a 90% LTV two-year mortgage had an average rate of 5.12% and a fee of £921, but this month the rate has dropped to 4.59% but the fee has risen to £1,423.

For those with a 25% deposit, the average rate at the beginning of the year was 3.98% with a fee of £1,531 and those numbers are now 3.5% and £1,736.

Those people with 60% LTV are lucky enough to have seen rates and fees fall, although from a high starting point. In January the best two-year deal was 3.95% accompanied by a rate of £1,694, and both these figures have fallen to 3.5% and £1,692 respectively.

Mortgages on five year deals show a similar pattern, although the fees are lower than the two-year deals at £1,433, £1,258 and £1,268 for 90%, 75% and 60% LTV respectively.

Sylvia Waycot of Moneyfacts.co.uk said the low interest rate deals on offer ‘will often be at the expense of high fees’.

‘The average fees charged have risen by almost 8% since January, though it is hard to justify how setting up costs can possibly have risen by this much,’ she said.

‘Mortgage lenders that are enjoying cheap funding for lending courtesy of the government, must be seen to be opening up the market to new borrowers and reducing rates will help with this message.’

She warned borrowers to make sure they are aware of the fees being charged on mortgages to ensure they are getting the best deal.

‘Rates are only part of the story; high upfront charges such as fees can easily be overlooked and yet their impact across the life of the mortgage can turn a cheap deal into a costly one and therefore should always be considered,’ she said.

‘If the government is serious about re-kindling the mortgage market with its Funding for Lending scheme, it should ensure all its subscribed lenders offer mortgages that exclude hiked up charges that are hidden behind low rates.’

Ahh housing. Unless you are a cash buyer you are getting your ar$e rogered constantly.

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Ahh housing. Unless you are a cash buyer you are getting your ar$e rogered constantly.

Which is the idea. Banks pretend they have money that they lend to you and get you to commmit as much future income to them for the priviledge.

This is not capitalism, it is a raid, backed and supported by the central bank and placeholders in government, to suit their own ends.

Merv's 7 million +? pension is testament to how brazenly they now feel they can act.

In europe they have resorted to outright theft.

Portugal next?

Edited by OnlyMe

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And if you are a cash buyer you are bailing out the feckless and the banks.

I'm staying out.

Those of us unfortunate enough to have to remortgage, but with low LTVs, can get some very good fee free lifetime trackers from HSBC / First Direct. HSBC are als now doing a 7 year fixed mortgage at 3.69%.

If you know of somewhere where I can safely make 3.69% after tax on savings I'd love to know.

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Ahh housing. Unless you are a cash buyer you are getting your ar$e rogered constantly.

"In January the best two-year deal was 3.95% accompanied by a rate of £1,694, and both these figures have fallen to 3.5% and £1,692 respectively."

What rubbish.

The best 2 year 60% LTV fix now is 1.74% not 3.5%.

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Those of us unfortunate enough to have to remortgage, but with low LTVs, can get some very good fee free lifetime trackers from HSBC / First Direct. HSBC are als now doing a 7 year fixed mortgage at 3.69%.

If you know of somewhere where I can safely make 3.69% after tax on savings I'd love to know.

With savings the longer you fix it in a cash isa the higher the rate becomes........is that not telling people something? ;)

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Those of us unfortunate enough to have to remortgage, but with low LTVs, can get some very good fee free lifetime trackers from HSBC / First Direct. HSBC are als now doing a 7 year fixed mortgage at 3.69%.

If you know of somewhere where I can safely make 3.69% after tax on savings I'd love to know.

Keep investing in the Express

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Keep investing in the Express

Up £297 a day eh?

If so, that would add £108,405 to the value of a property each year.

That would be an annual HPI of 154%, based on average house value of say £200k.

Who exactly writes for the Express? They certainly aren't journalists restricted by traditional covenants in ethics and accuracy.

Edited by cashinmattress

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Henry Pryor discussing this at 1.45pm on Radio 5.

from Twitter...

Henry Pryor ‏@HenryPryor

#Thatcher free five mins coming up at 1.45pm when I'm talking to @bbc5live about fees for mortgages. They're up, up, up!

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I assume fees mean the bank can book them as immediate profit, rather than waiting for the interest payments.

Anything for a short-term gain for next quarters bonus, long-term profit is someone else's problem.

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  • 243 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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