Summary

Mortgage lenders use headline interest rates to attract borrowers. But behind the scenes they're introducing a whole raft of add on charges. This article explains.

Mortgages. Watch out for add-on charges. Page 2

Author: Michael Challiner

And how the lenders dress up the names for their various charges.

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Mortgages. Higher Lending Charges are outrageous.: Higher Lending Charges are often charged if your mortgage is 90% or more of your property's value. We think the charge is a form of profiteering by the lenders and should be abolished. This article explains why.
Mortgages. Watch out for add-on charges.: Mortgage lenders use headline interest rates to attract borrowers. But behind the scenes they're introducing a whole raft of add on charges. This article explains.
Mortgaging for funds: A new study has found that pensioners are concerned that they will have to sell their homes or take in lodgers to make ends meet.

Life Insurance News

For example, application fee, booking fee, arrangement fee, product fee and completion fee are all words for the same charge! Every one of these descriptions means the same thing! The multitude of ( personal loans ) words simply serves to confuse and make it difficult for people to make logical comparisons.

If this continues, people will become increasingly punch drunk and confused. It will become impossible for the average man or woman on the street to make sensible ( life insurance quotes ) comparisons. And that will surely benefit the less scrupulous lenders. Maybe it's time for the Financial Services Authority to step in with their notoriously heavy boots!

A spokesman for the Nationwide Building Society which at £90 has one of the lowest exit fees, served to confirm our view saying, "The mortgage market has become ( car insurance quotes ) very fee orientated. Many larger banks are using fees to subsidise their lower rates. For example, many charge very high exit fees".

However, some mortgage lenders still defend their price rises. A spokesman from the Halifax said insisted recently that, "Our fees must be amended from time to time to reflect the ( best mortgages ) rising processing costs". This comment was made in defence of the 25% increase in it's arrangement fee over two years and the 75% jump in its exit fee.

Hands up who thinks cost inflation is running at 50% per year? Perhaps ( secured loans ) you should send an email to Gordon Brown copied of course, to the Halifax!

Statutory Wealth Warning:
Your home may be repossessed if you do not keep up your repayments on a mortgage or any debt secured on it.