First Time Home Buyer News: No-fee Mortgage Brokers Help First Time Buyers

06-Jul-2006

More first time buyers should be taking advantage of no-fee mortgage brokers to help them get onto the first rung of the property ladder, according to experts.

With fee-charging brokers, first time buyers may see between one and six per cent added to the cost of their loan.

This can mean aspiring homeowners paying an extra £1,800 on top of a £150,000 mortgage, financial comparison website the Motley Fool warns.

Neil Faulkner, personal finance expert at the Motley Fool, said: "Broker fees can significantly inflate the cost of a mortgage.

"Many people pay broker fees because they don't know they have the option not to. If you don't know for a fact that your mortgage broker is fee-free, chances are you're paying more than you have to."

Earlier this week, Drew Wotherspoon of British mortgage broker, John Charcol, warned aspiring home owners that their number one priority should be ensuring they get the best value for money on their mortgage.

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