Mortgage lenders give with one hand and take with the other
According to moneysupermarket.com, whilst interest rates remain at historic lows, mortgage lenders are finding alternative ways to maintain profit margins. It’s research suggests that the average mortgage application fee has risen by £97.00 from September 2009 which equates to a rise of 14%.
The fees comprise an application fee averaging around £850.00 plus a booking fee of around £300.00 typically. In comparing the differences between various mortgage products, it is recommended to calculate the total cost whereby in some cases a deal with a higher interest rate can have a lower total cost. The Daily Mail has some very useful tools for making the necessary calculations.