Mortgage borrowers warned of hefty fees

Mortgage borrowers are being warned about the increasing arrangement fees charged by lenders. Virgin Money has launched market-beating rates, but with a 1% fee. This means that buyers could pay a fee of £5,000 on a £500,000 mortgage. While lenders usually charge fixed fees, percentage fees are becoming more common. Andrew Montlake, managing director at mortgage broker Coreco, said: "Many consumers have been hypnotised by a low headline rate only to find that the fee or associated conditions carry a nasty sting in the tail." He added: "Percentage fees can work in some borrowers' favour depending on the loan amount, but the calculations need to be run and carefully compared. " 

Daily Mail (28/10/2023)