Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
China's Grand Plan to Take Over the World - 19th Nov 19
Interest Rates Heading Zero or Negative to Prop Up Debt Bubble - 19th Nov 19
Plethora of Potential Financial Crisis Triggers - 19th Nov 19
Trade News Still Relevant? - 19th Nov 19
Comments on Catena Media Q3 Report 2019 - 19th Nov 19
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

Good News For Borrowers As Exit Mortgage Exit Fees Fall, But At the Cost of Rising Mortgage Arrangement Fees

Personal_Finance / Mortgages Aug 02, 2007 - 07:56 PM GMT

By: MoneyFacts

Personal_Finance

Julia Harris, Mortgage Expert at Moneyfacts.co.uk – the money search engine, comments:“The month following the latest base rate rise to 5.75% has seen a raft of rate rises. Not only have variable rate mortgages increased, with swap rates also on an upward trend, fixed rate deals have been hit hard with rising rates too.


“But for any borrower looking to take out a new mortgage, these rate rises are only part of the equation. Continuing with the trend of rising fees, July has not been without exception. The table below shows the lenders and their fee increases in July, with some rising by up to a staggering £1K.

“While some of these large fee rises can be offset by lower interest rates, the overall trend for borrowers is rising rates and fees.

“With the exit fee deadline just passed, its good news to see that some lenders have already taken action and either reduced or lowered their exit charge. But is very unlikely that its going to be a clear cut reaction.

“With the actual cost of administering the exit of a mortgage deal estimated to be substantially lower than the fee charged by the lender, the vast proportion of the exit fee is profit. And, like any other profit making organisation, the lenders are unlikely to surrender this revenue stream without a fight.

“Lenders such as C&G, Standard Life, RBS Group, Northern Rock and the HBOS group have announced the removal of their exit fee. While Coventry has reduced its fee, following in the footsteps of Portman and West Bromwich which reduced theirs earlier this year. But Abbey and Bank of Ireland Group (Including Bristol & West and Giraffe) have adopted a different approach of renaming the fee. Take the Bank of Ireland for example; the fee remains unchanged at £195, but rather than being called an exit fee it’s now a lending fee and has the option of being paid up front at the start of the deal.

“Lenders won’t be happy to lose this revenue, and the proof is in the pudding. Already we are seeing lenders half-heartedly adhering, using sneaky name changes. And could the increases in arrangement fees be used to supplement revenues lost in exit fee reductions?

“The aftermath of the OFTs intervention to cap credit card penalty fees still rumbles on almost one year on, with rates rising, fees increasing and new charges being introduced. So if this is anything to go on, the mortgage market will see interesting times ahead as lenders explore avenues to recoup this income.

“If other rates and fees do increase or new charges implemented, surely this is not in the interest of the consumer. A transparent fee, which as long as fixed from the date of application, is fairer and clearer for the consumer to see, and consistent across the market to allow for comparison. Lenders using a multitude of ways to regain this money is not in the borrower’s interest.”

www.moneyfacts.co.uk - The Money Search Engine

Money Facts Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules