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Mortgage repayments at highest in fifteen years

A recent report has highlighted the extortionate fees being charged by many mortgage companies for property valuations, even in cases where the borrower is not moving home but is simply remortgaging and moving to another lender.

lettersMany mortgage companies have been at the centre of controversy over recent months over the high fees that they charge for taking out a loan, and this seems to be the latest method being used by these lenders in order to get extra money from consumers.

Figures suggest that these mortgage valuations could cost the lender little more than twenty pounds in some cases, yet consumers are being charged up to one thousand pounds simply to get the valuation done. Even more worrying is that many mortgage companies are arranging drive by valuations, where the surveyor does not even enter the property, and simply does the valuation from the outside.

Although consumers that are buying a property will want a valuation carried out to ensure that they are purchasing a sound property, for those that are simply switching lender and remortgaging the valuations is simply a waste of money.

However, a rising number of lenders are insisting that the valuation is carried out no matter what the circumstances, and consumers have little choice but to fork out the huge fees that the lender demands in order to have the valuation carried out.

Furthermore the Council of Mortgage Lenders has also admitted that a large number of valuations are actually automated, which means that the valuation is estimated based on factors such as the size of the property and the area that it is in. This means that the cost to the mortgage company is minimal yet consumers are still having to pay out a fortune.

Tom Smith
2nd July 2007

Recent Mortgage News:

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More Information:

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  • Can You Rely On Your Family To Help You Buy Your First Home?
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