Dreaming about a mortgage? You might need to save up a little more money. Indeed, reports are coming out now that the average mortgage arrangement fee has skyrocketed up to over 1500 GBP. The Government has been running a very long campaign to make borrowing easier, as an attempt to stimulate the economy. However, with fees rising, many would be homeowners are now starting to wonder if this is really the best way to go or if they should continue renting a flat.
The top comparison site, Moneyfacts, reported that arrangement and booking fees are going up and it looks like it will continue to do so. This is a hard piece of reality to take, considering that the mortgage rates are going down. You will probably see many more advertisements telling you all about the latest mortgage rates. If the rates are going down, the lenders have to look at where else they can make profits. The fees are going to be going up even more, but that doesn’t mean that you have to be out of the game completely. It’s just a matter of looking through all of your options.
If you’re really looking to get your fees lowered, you really need to think about getting a higher deposit. The classic “10%” deposit might not be what ultimately serves you. You could need to actually save up a little longer in order to bring some of those fees down. This also gives you the increased negotiation power to lower your mortgage rate a bit more. This will send lenders a sure sign that you really are serious about owning your own home. It’s completely up to you to figure out how you’re going to make things happen.
Many would be homeowners are concerned that the Government really isn’t trying to get them into homes, which is leading to more and more resentment as time passes and the economy continues to get worse.
This news will hit first time homebuyers the hardest, because they aren’t going to have the most deposit. You also will need to think about whether or not the increased fees will shut you out or not. If you can handle the extra fees, you really might be able to get your dream home a bit earlier. Don’t be afraid to look into any schemes that might focus on you as a first time homebuyer, or a lower income buyer. Every little bit helps, so don’t be afraid to check out ALL of your options. Good luck!