Mortgages

There are always fees that are associated with the taking out and the repayment of a mortgage. The fees have grown a lot in the last few years. Borrowers always need to keep an eye out for hidden fees that are often hidden behind what otherwise is billed as a great deal. The fact is, lenders often rely on those hidden fees as extra revenue and because of they rely so heavily on that extra revenue, most of the fee sizes have increased.

Typically mortgage lenders would tack on an extra fee to cover the “administrative costs” of the mortgage. Other fees that are typically tacked on to the cost of a mortgage are the early repayment fees, legal fees, exit fees which are charged when the borrower either finishes repaying the mortgage or decides to switch lenders, insurance penalties which are incurred when borrowers use outside insurance providers and not the insurance usually provided by the lender, the CHAPs (or telegraphic transfer) fees which cover the exchange of money from the lender to the solicitor, and valuation fees which cover the cost of property evaluation by the mortgage lender.

Borrowers should always make sure that they read the fine print.

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This entry was posted on Friday, October 12th, 2007 at 1:38 pm and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.