Borrowers ‘need to consider fees’
People planning to remortgage were today advised to include the cost of exit fees in their calculations as they attempt to identify the best deal available to them.
The recommendation came from Francis Ghiloni of mform, after research by the online mortgage company discovered the average exit fee charged by lenders on a £150,000 loan is around the £150 mark.
Mr Ghiloni said people should think about the impact of such fees on the total cost of a mortgage before signing up for a new deal.
"Borrowers who regularly remortgage … need to take account of exit fees as well as application fees and other costs which will have an impact on the true cost of their loan," he explained.
A recent study by price comparison website MoneyExpert.com found that the average upfront mortgage application fee has grown to £834.
It also discovered that many lenders now calculate the charge as a percentage of the loan's value, meaning the arrangement fee for a £150,000 mortgage can be as high as £4,500.
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