Fees rise along with mortgage approvals
25/01/2012 - A greater rise in fees for higher loan to value
Previous Article - Article Index - Following Article
Two items of news have appeared recently, one is that the number of mortgage approvals has risen slightly from 34,809 in November 2011 to 36,171 in December.
It is reported that net mortgage lending was £734 million against £465 million for the previous month. Actual mortgage approvals stood at approximately 30,000 to 35,000 since early 2009, against a figure of 29,000 in November 2010 to February 2011.
The other news that affects home buyers is the overall rise in the cost of mortgage arrangement fees. The typical arrangement fee during 2011 from a lender was £1,498, whilst the year before the figure was more likely to be around £889, which is a very large rise affecting smaller low deposit home loans for first time buyers.
It has been found that the average arrangement fee for a 60% loan-to-value mortgage has risen by 42% to £1,562. Fees on 90% and 95% mortgage loans have risen by 11% to £893 and £995 respectively. Borrowers with a 25pc deposit face a 65pc rise in the fee they pay to a lender to arrange their mortgage compared with a year ago at typically £1,599.
