You are here: Home - Mortgages - Buy To Let - News -

Building society mortgage fees £700 cheaper than banks

0
Written by:
13/08/2012
Banks are charging customers over £700 more than building societies for fees associated with mortgages, according to a report by MoneySupermarket.
Building society mortgage fees £700 cheaper than banks

Research looking at two-year fixed rate mortgages found that building societies were able to offer an average rate of 4.15%, compared to the 4.22% offered by banks.

When added to arrangement, booking and completion fees, the study said that using a bank could cost consumers £700 more over the mortgage term.

For five-year fixed rate products, banks were able to price their products cheaper than mutuals, with an average 4.62% compared to 4.68%. But when fees were taken into account, building societies are still £209 cheaper on average.

But banks tend to prove the better option for first-time buyers, the report said, with big banks able to offer lower up-front fees compared to building societies.

Clare Francis, mortgage expert at MoneySupermarket.com, said: “When looking for a mortgage, don’t just go to the big banks as there are some great deals available from smaller lenders too and it’s really important to get the best product as it could literally mean the difference in cost of thousands of pounds.

“What’s more, the deal with the lowest rate of interest won’t necessarily work out to be the cheapest. This is because set up fees can have a significant impact on the overall cost of a mortgage and they vary considerably.

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2198430-field-of-ripe-wheat-ears-closeup
Concerns over increasing food prices after the worst US drought in 50 years

The worst US drought in more than half a century has devastated crops, lifting grain prices to record highs.

Close