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Mortgage News

Brokers say high fees are scaring off clients

Adam Williams
Written By:
Posted:
April 19, 2013
Updated:
April 19, 2013

High completion and product fees are putting clients off mortgage products according to the latest Mortgage Solutions People’s Poll.

Data from Moneyfacts showed that the average mortgage arrangement fees have already risen by £112 this year, increasing from an average of £1,410 in January to £1,522 by this month.

In January a two-year fixed rate mortgage up to 90% loan to value (LTV) came with an average interest rate of 5.12% and a fee of £921.

By April the rate had fallen to 4.59%, but the fee risen to £1,423.

Our poll asked brokers if increasing fees were putting clients off mortgage products with 40% of respondents saying high fees are a problem.

Nearly half (47%) said that it still depended on the situation of each client while a further 13% said that there were enough low fee products on the market to satisfy demand.

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Sylvia Waycot of Moneyfacts.co.uk said: “It’s easy to get caught up in the excitement of heavily marketed mortgages that shout about low interest rates, but beware that they will often be at the expense of high fees.

“The average fees charged have risen by almost 8% since January, though it is hard to justify how setting up costs can possibly have risen by this much.”