Mis-sold Mortgage Claims > Mortgage News
Mortgage rates are hiding the true cost to borrowers
Mon, 24 Jan 2011
It has been reported following new research, that mortgage lenders are charging their customers a total of 39 different types of fees . This is hiding the true cost of a mortgage and making it difficult for borrowers to know which the best mortgage deals are. Headline rates do not always give borrowers the best deal.

It has also been revealed that the level of these fees, often added to a mortgage, have increased since the financial crisis of 2007. Four in five, two year tracker mortgages are charging £990 in administration fees, this compares to only one in five in 2007.

The fee charged when buying a mortgage can also include those from a mortgage broker for their advice. Direct to lender deals may include, booking, administration, arrangement, valuation and legal costs. These should all be provided in the 'Key Facts Illustration' (KFI) as part of meeting regulatory requirements set out by the FSA .

Some lenders were highlighted who charge more than 20 types of additional fees, these include, Newcastle Building Society, with 29, closely followed by Ipswich Building Society (28) and several others with 27. There were some who have kept the number of additional charges to a minimum, Stafford Railway was singled out with only three types of fees in their mortgage range.
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