Mortgage Arrangement Fees Go Through The Roof

Last month (18.8.2011) The Mirror newspaper reported on the recent large increases in mortgage arrangement fees. Fees for home loans are becoming ever more complex and variable as Lenders try to lure-in borrowers with eye-catching ‘best buy’ interest rates. This means that the real cost of the mortgage can be hidden behind small print, with the difference in the actual cost of the loan leaving the borrower seriously out of pocket.

The Mirror reported that nearly 90% of mortgage products carry an arrangement fee – which can vary from a reasonable ?99 to several hundreds of pounds, and sometimes more.

With the fragile housing market still in recovery, it is very much dependent on Lenders making affordable loans readily available to those who satisfy their lending criteria, but Lenders now seem to be trying to offset low interest rates with higher arrangement fees. The warning to all would-be Borrowers is to shop around carefully - and to compare the overall cost of all charges attached to their mortgage deal.