WHICH? advice.

Ian_Griffiths_Halifax

Which? warns of higher mortgage fees

Thursday 25th September 2008

Homeowners looking to remortgage their property have been warned to look at the overall cost of the loan rather than just the interest rates.

The warning from Which? magazine comes after a survey it conducted found that 26 per cent of people chose their current loan by selecting the cheapest rate.

Conversely, just 20 per cent of people considered other items such as fees to get a complete picture of the deal.

Which? said that a more considered approach is currently required due to the fact that lenders have hiked charges on their offers with many now demanding four-figure sums.

Martyn Hocking, editor of Which? Money, commented: "The cost of mortgages has soared in the last couple of years, but a lot of the focus has been on what’s happening with interest rates when in fact it’s the total cost of the deal that's important.

"Arrangement fees are now more than £1,000 on average, and sometimes much higher, which means that an eye-catching interest rate can be misleading."

The study also discovered that 31 per cent of respondents have never switched lender when remortgaging their home.

It's unbelievable, but true, that many people swapping deals don't look beyond the interest rate or monthly payments. The consequences of not using a broker

koexelek

Ian_Griffiths_Halifax wrote: »

It's unbelievable, but true, that many people swapping deals don't look beyond the interest rate or monthly payments. The consequences of not using a broker

That's why a lot of lenders would like to see us brokers put out of business, so that they can confuse the public with all their complicated criteria.

0james0

I see it all the time and I'm sure you guys do to. Re-mortgaging people and you explain to them that the reason their balance has hardly gone down was because they added £2000 in fee's to the mortgage last time.

"But the guy in the bank said it was the best one" - I bet he did!

koexelek

0james0 wrote: »

I see it all the time and I'm sure you guys do to. Re-mortgaging people and you explain to them that the reason their balance has hardly gone down was because they added £2000 in fee's to the mortgage last time.

"But the guy in the bank said it was the best one" - I bet he did!

it was for the bank :rolleyes:

smnb08

Thats why i am so glad i found this site.
anything im not sure about i ask you guys as you tell us how it is as you have nothing to gain by telling us porkies!!

koexelek

smnb08 wrote: »

Thats why i am so glad i found this site.
anything im not sure about i ask you guys as you tell us how it is as you have nothing to gain by telling us porkies!!

We "advise" not "sell".

There is a big difference