Fixed-rate mortgage fees rising
February 8, 2007 by admin
Filed under News, News-Mortgages
Mortgage lenders are raising their application fees for fixed-rate mortgages, as the products become more and more popular.
With interest rates currently standing at 5.25 per cent and fears among many that future rises are imminent, first-time buyers are fearful of taking out variable rate mortgages.
However, as lenders have recognised the growing trend, they have begun increasing application fees, according to MoneyExpert.com.
The average application fee has risen by 18.5 per cent since last August, with products that have a fee of at least £750 also becoming much more common.
“Homeowners are desperate to fix their mortgage rates to avoid incurring further costs caused by rising interest rates,” said Sean Gardner from the website.
“It’s the sensible option, as further rises aren’t out of the question.”
People considering taking out a mortgage, particularly first-time buyers, may find that a fixed-rate is the best option for them.
However, it is recommended that you shop around to find the best mortgage to suit your circumstances and ensure that you can realistically afford to pay the application fee.
