Mortgage News
53% of Brits can’t decide whether to fix or track
Over half of the mortgage borrowers polled by a mutual said the interest outlook was too uncertain to decide whether to choose a fixed or tracker rate mortgage.
Research from Saffron Building Society suggested 29% would fix their mortgage if they were taking out a new mortgage today, with 11% opting to fix but 53% couldn’t make up their minds.
East Anglia-based Saffron revealed the extent of the confusion from mortgage borrowers in the UK, with 45% of borrowers unclear how much the average application fee costs, with the average guess at £532.
According to the latest data by data provider Moneyfacts the average application fee is actually £957 – with some fees rising to up to £2000 in total.
With 400,000 people expected to remortgage in 2011, 8% of prospective borrowers said they would use credit, or borrow from family members to fund application fees, with 28% rolling costs into the loan.
Saffron Building Society is set to offer its remortgages fee-free, so with no arrangement, application, valuation or legal fees, but the offer is only available through branches and to customers in Saffron’s catchment areas.
£2.5m paid to help broker clients benefit from greener homes
Sponsored by Halifax Intermediaries
Andy Golding, chief executive of Saffron Building Society, said: “Borrowers clearly expect that a rate rise is on the cards sooner rather than later, so now is the time when many could be looking to remortgage.
“However, these people could be in for a shock when it comes to meeting their mortgage application fees. Those we surveyed estimated these to be around £500 but on average fees are almost double that, which is why at Saffron we are giving borrowers a real financial boost by offering a fee free remortgaging service.”