28 Nov

Borrowers urged to check mortgage fees

Borrowers urged to check mortgage fees

The number of mortgages with uncapped upfront fees has jumped in the last 12 months, it has been revealed.

According to data from Moneyexpert.com, in November last year there were just 110 mortgage products on the market which came with an uncapped application fee.

However, as of this month the figure has increased five-fold to 506, according to the financial comparison website.

The study also revealed that the cost of upfront fees has increased by 63 per cent in the same timeframe to stand at £834 and that uncapped fees can be as high as 3.25 per cent.

Sean Gardner, chief executive of MoneyExpert.com, said the findings underlined the need for borrowers to look closely at the terms of the loan they are offered.

He said: "The rate at which banks and building societies are increasing the cost of their fees or switching to uncapped fees is alarming.

"Borrowers need to look carefully at mortgage deals and not just focus on the interest rate. What might look like a good deal will soon become a bad deal once fees are taken into account."

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