Mortgage fees and energy costs soar
Mortgage fees have increased by 27 per cent in just three years, according to new data from independent comparison site Moneyfacts.
The average mortgage arrangement fee is now £1.502, which is £321 more expensive than it was in 2009.
While residential mortgage rates have fallen over the same period, helped by a record low Bank Rate of 0.5 per cent, mortgage arrangement fees are now at their hightest level since Moneyfacts’ records began, more than 20 years ago.
A spokeswoman for Moneyfacts.co.uk said: “Over the last three years mortgage choice has almost doubled, which will be good news to prospective borrowers.
“While the number of mortgage deals has increased, fees are at their highest since Moneyfacts’ records began, so consumers need to check the true cost of any mortgage offer.”
A loan with a low interest rate may be subject to a higher arrangement fee than a loan with a higher rate of interest.
Prospective house buyers need to take this into account when calculating the cost of the loan over its full term.
Potential house purchasers also need to bear in mind the cost of running their new home after they move in, as this is another area where costs have soared.
The cost of owning and running a home is now at its highest level since 2008 according to data from the Halifax.
This is largely due to gas and electricity prices which have increased by 50 percent, or £218 on average, since 2008,
However there is some good news for householders, as average mortgage payments have fallen by an average of 23 per cent.
The most expensive place to own and run a home is London, where it costs £11,843 a year, while house owners in Northern Ireland have the lowest costs, at just £7,793 a year.