£1,140 now added to first-time buyer fees |
09 2008 |
| Britons who want to get a foot onto the property ladder now have to pay £1,140 more in up-front costs than first-time buyers just 12 months ago, a new report has concluded. According to research carried out by the mortgage broker Mform.co.uk, mortgage arrangement fees for first-time buyers have soared by 35 per cent since March 2007 to a current average of £857. Furthermore, the average interest rate on the five best mortgage products aimed at first-time buyers now has risen from five per cent to 5.8 per cent over the same period, pushing annual repayments up by as much as £920. To make matters worse for would-be buyers, products aimed at helping them onto the property ladder have been steadily removed from the market, with Abbey the latest lender to withdraw its 100 per cent deal. Francis Ghiloni, marketing and business development director for Mform.co.uk, noted: "The mortgage market has gone through an unprecedented period of turmoil in the last three months with products being withdrawn and tougher conditions being imposed on borrowers. Some lenders have effectively shut up shop."  |
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