A new report published by Moneyfacts shows that there has been a year-on-year drop in the average fee levels for certain types of mortgages.
The report found that the average fees charged for fixed rate mortgage loans has dropped from £1,047 at the end of last year, to £1,022 for December 2019. Furthermore, the same report also found that 41% of the fixed rate mortgage deals that are currently being offered in the UK do not charge the person taking out the loan any product fee at all.
According to the Moneyfacts report, mortgage lenders now also provide valuations free of charge for just under 70% of all fixed rate mortgages – which amounts to seven out of every ten. Meanwhile, 50% of those types of mortgage loans come with the additional bonus of no legal costs.
This all seems to be a positive development for fixed rate customers and indicates that mortgage lenders now see fees as another area where they can gain a competitive edge over rivals, alongside reduced mortgage rates.
Moneyfacts finance expert, Rachel Springall, told Mortgage Finance Gazette that this marked a recognition that cutting back on upfront charges such as fees could help attract those customers for whom a reduced rate was not enough to get them to sign up for a loan.
With lenders offering so many incentives to convince people to take on mortgage loans, advisors with a CeMAP qualification are more necessary than ever to assist people in making the correct choice for them.
