There was a notable increase in the number of mortgage-related articles in this weekend’s papers, compared to recent weeks.
The Daily Telegraph reported that arrangement fees are now two-thirds higher than they were a year ago, now costing an average of £1,130. Brokers agreed that merely comparing the headline rates to find the cheapest deals could now be misleading. However, big fees do not necessarily mean a bad deal, as those with larger mortgages would still benefit from a lower interest rate. The Financial Times said that borrowers in need of mortgages of £1m or more are being priced off the high street as lenders such as Abbey, Nationwide and Chelsea rein in their maximum loan sizes and impose higher fees.
The Mail on Sunday looked at fixed-rate mortgages, following the decisions made by Abbey and Woolwich to raise the costs of their fixed-rate loans. Mortgage brokers say the move is bad news for first-time buyers and homeowners looking to remortgage as it will almost certainly signal further rate increases in the market.
The Sunday Express reported that more and more first-time buyers looking to get on the property ladder are teaming up with friends and siblings to do so. The good news is that almost half of lenders allow multiple applications, with some setting no limit at all.
Finally, the Independent on Sunday had an article on the growing number of lenders who offer competitive mortgage rates, but only to those who also take out another product with them. Experts warned consumers to think carefully before putting all their eggs in one basket.