14
Aug
Nationwide upfront fees "may be in the borrower's interests"
Nationwide's plans to charge borrowers an upfront fee in order to
secure a mortgage may be beneficial for consumers, according to a
property expert.
Louise Cuming, head of mortgages at moneysupermarket.com, said that
many customers do not appreciate the damage multiple mortgage
applications can have on their credit profiles, so an upfront fee
could be in their interests.
A current concern among lenders is that borrowers will be tempted
to apply to various mortgage providers in order to increase their
chances of securing a product.
"With a good credit history being worth its weight in gold at the
moment, a small upfront fee might be of as much benefit to the
consumer as it is the provider," said Ms Cuming.
These comments come after Nationwide last week announced its
decision to cut the rates on 44 of its fixed-rate and tracker
mortgage products by up to 0.5 per cent in an attempt to provide
better value to new borrowers.
