Mortgages confused

22/02/2007

Building societies and Banks are making things difficult for homeowners to get the perfect mortgage. They are making things so complicated that even regulators are in no position to help.

Within the UK there are over 3,999 types of mortgages, and lenders today are charging homeowners with administration fees which is leaving a high total towards the end of setting up the mortgage deal.

The fees are named differently but actually mean the same thing such as production fee or reservation fee. They are doing this to make you feel the interest rates are low but really the fees just cover that low interest rate figure.

From London & Country, David Hollingworth says: 'Lenders are using these products fees for administration and reservation of the mortgages as another income stream to enable them to push down their rates. It does make the market less transparent for the ordinary consumer.'

The Office of Fair Trading and FSA states that nothing can be done to stop the mortgage market becoming more and more confusing each and every year. They feel that lenders are trying their best to get most out their customers.

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