Britons 'underestimate' mortgage fee significance
Published On 29 November 2007
People in the UK are failing to focus on fees when choosing a mortgage product, something that could leave them out of pocket in the long-run.Research carried out by Moneysupermarket found that 60 per cent of homeowners do not place sufficient important on fees when arranging a mortgage.
Instead, 74 per cent are mainly focused on the interest rate offered by the mortgage. A loan with a low interest rate could still end up costing more once fees are factored in, the report said.
"With fees having shot up over the past 12 months, people need to factor in the true cost of a mortgage rather than be tempted by the rate," said Louise Cuming from the price comparison site.
She added, however, that only 21 per cent of mortgage-holders remained with the same provider when organising a remortgage.
"The survey found 60 per cent of homeowners chose their last mortgage either by comparing several options from different providers, searching online or going to a broker."
Figures from MoneyExpert revealed recently that the number of mortgage loans with uncapped upfront fees has increased fivefold since November 2006.
