Banks
and Mortgage lending Fees
Lenders
have recently potentially due to tighter competition
and market conditions been forced to look
for
other ways to charge clients to maintain healthy profits.
Several
lenders where noticed to have charged clients for exiting
their mortgages. Though these charges were not called
early repayment charges but in some cases where more
commonly called administration and handling fees payable
on redemption. This was brought to the attention of
the FSA or Financial Services
Authority and since then lenders have in some
cases now been refunding some of these costs.
Lenders
have also charged in some cases larger fees for example
on fixed rates. These charges should be noted and quantified
when taking out a mortgage, for a headline rate may
potentially look initially a bargain but when considered
as a total cost over the deal period be actually a higher
cost than would appear.
Borrowers
may incur the following fees with a property purchase
and lenders may charge on a re mortgage a completion
fee, valuation fee, solicitors fees, insurance fee,
administration fee, higher lending charge, electronic
transfer fee and early repayment charge.
