According to a number of reports this week the fees banks charge mortgage borrowers have doubled in the past five years. Indeed according to The Telegraph consumers are reportedly being charged numerous fees for the administration of their mortgage, with the average arrangement fee having risen from £878 pounds in 2009 to £1,588 in 2014.
Furthermore the article points to research from consumer group Which that suggests that this has resulted in great confusion and made it difficult for customers to find the best deals. For example their study found evidence of 40 different types of set up fees charged by banks, including so called “administration fees”, “booking fees” and “reservation fees”. Adding to the confusion many providers were also found to be using different names for the same or similar fees. Worryingly as a result of this they report that many borrowers have been tricked out of thousands of pounds despite believing they were getting a good deal.
Significantly, mortgage fees can be an important factor to consider when it comes to the cost of a mortgage and can in fact make a big difference. The article quotes Which Executive Director Richard Lloyd, as stating that “The complex range of fees and charges prevent people from finding the best deal as the total cost is not clear.”
As a result of these findings Which are calling upon the chancellor George Osborne to use his autumn statement to help put a stop to sneaky fees and charges on mortgages to make it easier for consumers to find the best deal when it comes to their mortgage.
However according to the BBC a spokesman from the treasury has stated that consumers were protected by the Financial Conduct Authority and are free to choose the best deals, and furthermore that “the government is committed to increasing competition in the mortgage market and making it simpler for customers so they can choose the mortgage that’s right for them”.
Reports such as these demonstrate how confusing the mortgage market can be at times. However here at Search Mortgage Solutions we can help. We are mortgage experts and our Birmingham-based mortgage advisors can help you find the most appropriate mortgage for you, to meet your individual needs and requirements. So if you’re looking for a mortgage broker in Birmingham please do not hesitate to contact us and a member of our friendly team will be happy to help you with your enquiries.