Borrowers feel the pain

Mortgage borrowers who already have to contend with falling house prices and inflexible lending criteria have been shaken to their very core after it emerged that mortgage application fees have doubled to 13 percent in the last two years.

And with that hammer blow comes news from the Council of Mortgage Lenders that the amount of home loans granted had decreased to 40,900 this April from 41,900 only a year earlier.

Clare Francis, mortgage spokesperson at moneysupermarket.com, said: 'When looking for a new mortgage, it’s easy to be lured in by low headline rates. However, it is vital borrowers take into account arrangement and booking fees as part of the overall cost. The size of the fees can vary greatly, with some providers offering fee-free deals while the set-up costs on other mortgages can run into thousands. It is therefore vital to work out the total amount you’d repay over the term of the offer.'

In other words, always read the small print!

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