Mortgage fee increases will result in full blown house price crash

Over the past few months we have seen mortgage lenders increase their fees, and is looks as if there is no sign of this stopping. These increases in fees will then have a knock on affect, as a result could push the housing market in further into a full-blown crash, this is something that Louise Cuming, head of mortgages at Moneysupermarket.com , believes what will happen.

HBOS, is just the latest lender to increase their fees, they will now charge a £245 mortgage account fee. Cuming believes that this increase in fees have been sneaked in, just to make up for the loss in mortgage exit fees following the FSA’s investigation last year. She said “[Last Year,] HBOS was hailed for reducing the controversial charges from Halifax deals from £225 to £50.” She also added “Disappointingly it has now decided to introduce a fee of £245 just when borrowers are feeling the pain of increasing rates and the rising cost of living.”

Cuming believes that HBOS should rethink its decision and scrap it, as this is a very difficult time for buyers. She said that borrowers now need all the support that they can get at the moment, and that any more decisions like this from other lenders could further push the housing market into a full-blown crash.