| UK mortgage fees have risen considerably in the | | | | mortgage fees. |
| past few years despite low interest rates and | | | | Because fees now comprise a significant expense |
| high levels of mortgage market competitiveness. | | | | to borrowers it is important to include them in |
| The rising UK mortgage costs include both the | | | | any mortgage comparison when assessing which |
| fees applied to the mortgage upon application and | | | | UK mortgage is the best for their particular |
| upon redemption. | | | | circumstances. It is no longer good enough to |
| The cost of applying for a UK mortgage has risen | | | | simply compare the headline interest rate. |
| considerably in the past three years alone - in | | | | The true cost of a UK mortgage is demonstrated |
| addition to a steady increase prior to this period. | | | | by the Annual Percentage Rate (APR). The APR |
| The hike in application fees has occurred despite | | | | presents a truer representation of the true cost |
| UK mortgage lenders cashing in on increased | | | | of a UK mortgage than the headline interest rate |
| earnings via interest collected thanks to soaring | | | | meaning that the lower the APR, the more |
| property prices and increasing average mortgage | | | | cost-effective the mortgage is. |
| balances. | | | | However, it is still not good enough to base a |
| In addition to the increase in UK mortgage | | | | decision solely on comparing APRs of competing |
| arrangement fees, the cost of exiting a mortgage | | | | UK mortgage products. Other factors, such as |
| has risen considerably within the same three year | | | | the service levels of the lender and the flexibility |
| period. | | | | of the UK mortgage, should also be taken into |
| The cost of redeeming a UK mortgage during a | | | | account. |
| fixed interest rate period can be as high as 5% of | | | | Selecting the right UK mortgage can be a |
| the balance of the mortgage. A UK mortgage | | | | confusing task so it is a good idea to speak to an |
| that is redeemed without an early repayment | | | | independent mortgage broker for impartial advice |
| charge can still cost the borrower several hundred | | | | if required. An independent mortgage broker will |
| pounds, particularly if there is a remortgage | | | | have specialist software that can scan the entire |
| involved. | | | | UK mortgage market to help select the right UK |
| A more competitive UK mortgage market has | | | | mortgage product to suit an individual's personal |
| seen home owners benefit from an interest rate | | | | financial circumstances. |
| war, however, this has not translates into lower | | | | |