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.
Many 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:
- Mortgage repayments at highest in fifteen years [01.07.07]
Over the past year interest rates in the UK have risen a total of four times, each by 0.25 percent.The Bank of England raised interest rates in August and November of last year, and in January and May of this year, and many analysts predict that there will be a further rise in the summer.
- 100% mortgages double in a year [29.06.07]
According to a recent report the number of 100 percent mortgage that are available in the UK has doubled in the space of a year in order to enable consumers with no deposit to get onto the property ladder.
- Unfair mortgage fee victims should seek compensation [19.06.07]
The UK's Financial Ombudsman Service has advised consumers to seek compensation if they feel that they have been overcharged on fees for falling behind with repayments on their mortgage.
More Information:
- Fixed Rate Mortgages
What are the benefits of a fixed rate mortgage? Which lenders are offering which products and how do they compare?
- Choosing The Right Mortgage
The market is flooded with different types of mortgages, but how do you know which one is right for you? The decision has to be yours, whether you take advice from an Independent Financial Advisor or do your own research.
- Don’t Forget The Extra Hidden Costs Of Getting A UK Mortgage
For most of us, buying a new home is both one of the most exciting and stressful times of our lives. It goes without saying then that this is not a particularly good time to find out that you may be facing a bill of thousands of pounds in extra hidden costs for getting the mortgage to buy the UK property.
- Can You Rely On Your Family To Help You Buy Your First Home?
At no time in its history has the UK housing market since such a marked increase in the average value of its housing than in the last 20 years. Today, regardless of whether you come from the North-east or South-east, more and more young Britons are having to stay at home much longer and also to look more ingenious ways to try and raise the large deposits they’ll need in order to help them purchase that first home. The big question is, can you rely on your family to help you buy your first home?
