Homebuyers should 'be wary' of high mortgage fees

21-Mar-2007

In news which may be of interest to first time buyers, mortgage applicants are being urged to show caution when considering low interest rate, high-fee mortgage combinations.

According to Moneyfacts, homebuyers - both first time buyers and repeat purchasers - should be aware of the financial implications of taking out a mortgage with a high associated fee.

"The trend just highlights how some lenders and consumers are still keen to focus on interest rates and not the whole package," said Julia Harris, a mortgage analyst at Moneyfacts.

"It is worrying that consumers may be duped into these deals," she added.

A mortgage fee can either take the form of a single specified amount, or it may be expressed as a percentage.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

Moneyfacts offers a range of comparisons on a number of different products, including personal loans and offshore savings accounts.

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