Stockport’s Vernon Buoilding Society is warning home buyers that some mortgage lenders stand accused of manipulating mortgage best buy tables by subsiding a very low interest rate with a large arrangement fee – up to £2,650 in some cases.
According to research by Moneyfacts, the average mortgage arrangement fee has risen to £1,522, the highest figure that the financial research company have on record. With many mortgage lenders offering low discount mortgage deals with high arrangement fees it can be difficult for those looking to remortgage to work out what the best deal for them truly is.
Stockport based Vernon Building Society is bucking the current
trend for high fees and has removed the arrangement fee from
its 2 Year Discount mortgage deal.
This means that borrowers will no longer pay the £699
arrangement fee on this product, a fee already significantly lower
than the market average.
Ian Keeling, Head of Sales and Marketing at the Vernon said:
“It’s important for homeowners to factor in fees when looking at changing lenders as the lowest rate may not end up being the most cost effective when you take a large arrangement fee into account. We believe in offering fair products to all at the Vernon and don’t believe that only borrowers with thousands of pounds to spend on arrangement fees should have access to competitive mortgage deals.”
For more information about the current mortgages available at the Vernon, visit www.thevernon.co.uk or visit any Vernon Building Society branch.
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