Borrowers beware: Non-refundable fees will 'cost cash'

Borrowers need to look out for non-refundable booking fees as "many things can happen" to stop a mortgage deal going through, an industry expert has warned.

Independent mortgage adviser Charcoal.co.uk has warned that the consumer is no longer "king".

Abbey introduced their non-refundable fee this week and, Charcoal says, other lenders may now follow their lead and start to add compulsory charges.

Drew Wotherspoon of Charcol.co.uk explained: "Traditionally, [when mortgage deals fall through] this has not cost borrowers anything other than wasted time and maybe some legal fees. However, should they not complete on a mortgage with an up front fee now, it will cost them actual cash."

According to Charcoal, avoiding the pitfalls of non-refundable mortgage fees is just another example of the difficulty borrowers are encountering and strengthens the case for seeking independent advice.
The Council of Mortgage Lenders (CML) revealed today (June 12th) that an increasing number of consumers are opting for fixed-rate mortgage deals.

The proportion of borrowers taking out fixed-rate products increased to 59 per cent in April, up from 54 per cent in March.

Mortgages News posted on 12/06/2008 12:33:07