Mortgage Deals – Banks increase number of short term mortgage deals as arrangement remains high

In: Mortgage| banking| financial| loan

1 Dec 2009



Mortgage Deals – Banks increase number of short term mortgage deals as arrangement remains high

A year ago, borrowers had access to the same number of two year and five year deals. But there are now almost 50 per cent more two year deals than five year ones, according to personal finance website Moneyfacts.

Borrowers can end up paying thousands of pounds in arrangement fees every time they take out a new deal.

Andrew Montlake of mortgage brokers Coreco, said: “It is a worrying trend that high arrangement fees have become accepted. The days of £500 to arrange a mortgage have disappeared. Borrowers can expect to pay more than £1,000 for the best deals.

“While lenders are quite attractive, high arrangement fees have remained, which feels like a kick in the teeth for borrowers.”

He added: “The problem is that lower fees mean higher rates.”

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