Mortgage costs rise by a third
Published On 21 November 2006
New research has found mortgage costs to have increased by a third over the last three years.Figures from the mortgage research company Mform have shown that since 2002/03, the average yearly cost of a mortgage has risen from £4,711 to £6,284.
The price of a mortgage has risen six per cent in the last 12 months alone, while there has been an increase of 24 per cent and 33 per cent in the last two and three years respectively.
Eamonn Rice, Mform chief executive, said: "Compared to last year, house prices have increased by around 7.7 per cent and with the possibility of a further rise in the Bank of England base rate, the size and cost of a mortgage will continue to rise.
"With so many loans to choose from it's possible to wipe hundreds or thousands of pounds a year off your repayments by just shopping around for the best deal."
The best current mortgage deal a first-time buyer could find on the market charged 1.26 per cent less in interest than the dearest, Mr Rice added.
He said: "On a typical first-time buyer mortgage of £108,000 this could reduce repayments by around £1,360 a year."
