Residential Mortgage Fees At Their Highest Since May 2014
There are an awful lot of providers of residential mortgages who also offer a wide selection of mortgage products including fixed and variable rate packages. Many borrowers are currently benefiting from low interest rates and, although nobody knows for definite, it may be that rates could remain low for some time.
However, Moneyfacts.co.uk has carried our some analysis of what arrangement fees residential mortgage providers are charging. Their findings do make for interesting reading.
Apparently, the average mortgage arrangement fee is presently £956. This is the highest that it has been since back in May 2014 when the average fee was £973. In June 2014 the average mortgage fee had dropped to £888. By Feb 2015 it had gone up to £924 and by June 2015 it had reduced slightly to £922.
The average fee for a fixed rate residential mortgage is presently £964 and back in May 2014 it was £956. The average fee for a variable rate residential mortgage is presently £933 and back in May 2014 it was £1,012.
Apparently, there are some instances when the fee being charged runs into several thousand pounds. One would have thought that there was not a great deal of difference in the processing costs of different types of mortgages for varying amounts so it begs the question as to why lenders need to charge such a wide range of fees.
When looking at the residential mortgage packages available potential borrowers should not just take into account the interest rate being charged. They should also take into consideration such things as the fees being charged especially if these fees are also being added to the amount being borrowed.
If you are unsure how to go about comparing the different mortgage packages available then you may wish to get some independent advice from the likes of a mortgage broker who is able to analyse such data.