Fixed-rate mortgages have increased by 18.5%

08/02/2007

Since August, lenders are charging an application fee when homeowners are applying for a fixed rate mortgage, there has been an 18.5% jump since August, and MoneyExpert claimed figures.

The first base rate rose in August, today new products are coming with a standard fee and MoneyExpert feel these fees are rising more and more every year.

Chief executive, Sean Gardner at MoneyExpert, commented: "Homeowners are desperate to fix their mortgage rates to avoid incurring further costs caused by rising interest rates.
Further more he said: "However, banks aren't stupid and fees should be taken into considerations if you're looking to switch.

"You could incur exit and application fees just for moving provider so check before you commit. These can be hefty and may mean the difference between staying put and moving on."

There are products today on the market which do not have a set application fee, its up to homeowners to choose what deal they would like to take on as some deals contain no application fee charge, analysis investigated further.

When applying for a mortgage there are some people who are being charged 2%, which simply means if you have a loan of £200,000, a buyer would have to be charged £4,000, MoneyExpert feel homeowners need to be careful and no what deal they are getting themselves into.

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