Mortgage Application Fees 'Soaring'

13-Jul-2006

First-time buyers are being given mortgage advice regarding budgeting for increasing application fees from MoneyExpert.

The price comparison website says that mortgage application fees have risen by up to 22 per cent in the last 12 months.

This means that some aspiring homeowners could face fees of over £1,000 for fixed-rate loans, with discount mortgages bringing an average charge of £407.

"Borrowers need to budget for application fees when they take out a mortgage and particularly those who are remortgaging," comments Sean Gardner, chief executive of MoneyExpert.

"What you believe is a cheap deal saving you, for instance, £100 a month, won't look quite so good when you add on application fees."

According to MoneyExpert, three-quarters of discount mortgages carry application fees.

Other research by Moneysupermarket has found that buyers looking to get onto the first rung of the property ladder could face up to 46 different fees and charges on their mortgages.

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