Rocketing arrangement fees in place from lenders

The news just seems to get worse and worse of consumers that are hoping to be able to get a good deal on a mortgage or remortgage.

Since the global credit crunch winged its way to the UK the number of mortgages, and access to mortgages, has been vastly reduced, leaving many unable to get a mortgage or remortgage deal. And according to a recent report matters are now getting even worse, as a result of arrangement fees.

The report shows that the mortgage arrangement fees that are now being charged by lenders have rocketed over the past eighteen months. There are now over three hundred mortgages that charge arrangement fees of over £750, whereas just a year and a half ago there were only twenty or so mortgages with arrangement fees at levels as high as these.

This is making things even more difficult for those that want to get an affordable mortgage.

One industry official recently stated: ‘Such high application fees will come as something of a shock to many homebuyers. We’re just not used to these levels. The days of fee-free mortgages are over and frankly getting anything under £1,000 is something of a coup. With stamp duty reaching an average of £4,950 per property, moving home is becoming more and more expensive.’