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Look out for hidden charges on your UK mortgage

Date: Tue, 11 Oct 2005

People taking out a new mortgage are being urged to factor in any hidden costs.

Increasing competition in the mortgage industry means that many lenders are reducing their overall rates, whilst trying to recuperate costs via higher hidden charges such as completion or arrangement fees.

More lenders are introducing charges for a range of services, but are neglecting to adequately inform customers, reports Francis Shennan of the Herald.

There has been a sharp increase in exit fee increases over the past six months – with more than 20 mortgage providers choosing to more than double their exit charges.

Overall, average mortgage fees have increased by more than 50 per cent in the last 15 months and the Financial Services Authority have announced they plan to consult lenders on why the fees have risen so dramatically in such a short time frame.


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