First time buyers have found it “virtually impossible” in recent times to purchase their own home, research suggests. While deposits and moving costs may be stumbling blocks for young people, it will come as a relief to see fees on fixed rates mortgages fall by 17%.
Mortgage Fees Drop
A study taken by one mortgage lender has shown that mortgage fees have dropped by £149 (from £860 to £711) since November of last year. This comes at a time when fixed rate mortgages are at the lowest they’ve ever been.
In a poll of mortgage brokers however, 30% predicted that fees will increase over the next two years while only 12% expected them to fall further. As mortgage rates are so low, the need to make margins is being felt by lenders. This is why some experts are theorising that increased fees will be used to offset losses in profits.
The Future of Mortgages
In the near future though, it may be more likely that we see changes to early repayment charges, in a bid for mortgage lenders to make up any losses. For more information on how mortgages fees, rates and charges are likely to change over the next 24 months, head over to the Mortgage Solutions website.