Arrangement fees struck on mortgages
The mortgage sector has been highly affected by current credit conditions, reducing affordability for not only potential buyers but for lenders too.
The government has tried to help the industry by submitting billions into the money markets and are trying to allow lenders to switch mortgage assets for government bonds.
The Shadow Chancellor commented: “If the government comes forward with a sensible idea, and I’d urge them to get on with it because after all we’ve been dealing with this problem now for months and the dithering is not helping anyone, then we will support it.”
A Liberal Democrat official also spoke his comments: “I am very concerned that in addition to all the costs associated with Northern Rock, the government is going down the disastrous road of bailing out the banks and leaving the taxpayer with the liabilities.”
A recent survey carried out indicated that consumers are being effected in a number of different ways when trying to compare mortgages, and increased arrangement fees could see homeowners deeply out of pocket.
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