Mortgage borrowers in the UK are dealing with rising mortgage rates and sky-high fees, which have risen by 70 percent in the last three years.
Figures from Moneyfacts.co.uk show that the average cost of obtaining a home loan now stands at £1,511 (S$1,927), significantly higher than the £878 (S$1,119) in 2009. In some cases, a fee of £2,000 (S$2,550) is required to get the best rate.
Last month, major lenders including taxpayer-backed Halifax increased their standard variable rates by as much as 0.3 percentage points.
As the focus turns to interest rates, many potential homeowners or those remortgaging could be attracted to the bargain headline rates promoted by lenders. But borrowers are advised not to assume that the best deal would be the lowest rate.
Bargain-low rates offered by banks and building societies come at a price, which is usually not worth paying.
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