Our new research shows that mortgage fees have almost doubled in five years, from £878 in 2009 to £1,588 in 2014. Have you been stung by fees and charges when arranging a mortgage, whether moving house or remortgaging?
Through our campaign to Stop Sneaky Fees and Charges we’ve heard about your experiences of costs being added to your financial products and services.
This can range from insurance fees to admin fees, or overdrafts to credit cards. And our latest research shows that the practice is prevalent in the mortgage market too.
I went through the overwhelming task of setting up a mortgage last year. The experience included an intricate spreadsheet which took into account the range of fees, mortgage terms and other complicating factors alongside the APR for the deals. It was a daunting task, made harder by the sneaky suspicion that all the fees and charges just didn’t appear to be listed up-front in an easier to compare format.
40 types of mortgage fees
Our research shows I’m not alone, and the comments you’ve shared through our campaign are testament to that too. Bob told us:
‘Fees have mushroomed over the past few years. There’s a big difference between when my wife and I bought a house 25 years ago and when our daughter bought a house this year. There were six types of fees on her mortgage – against the one we were charged.’
Our research found 40 fees and charges across the market. These could be anything from set up fees, completion fees, arrears fees and final repayment fees as Eric has discovered:
‘I am expecting some expensive charges from my mortgage company when my mortgage is paid off. This they say is an admin charge to close the account. I feel that I have paid them enough over 25 years and to pay this extra charge is just too much.’
And Casey told us:
‘I’m currently looking for a mortgage deal. The experience is like comparing apples with pears!’
We’re now calling on the Chancellor to end mortgage confusion and use his Autumn Statement to stop sneaky fees and charges on mortgages and make it easier for people to find the best deal. This includes asking for mortgage price comparison to be made easier, to make the full cost of a mortgage clearer, and ensure any additional fees are cost reflective. You can help by supporting our campaign and sharing your experiences of fees and charges in the housing sector with us.