Mortgage rates hit nine-year low

first_imgInterest rates on mortgages have hit record lows, but borrowers are being hit with higher fees, as banks look to protect their profit margins, according to figures from Moneyfacts.co.uk.The average interest rate on a two-year fixed mortgage fell to 2.52 per cent in February, down from 3.14 per cent a year earlier and the lowest level since Moneyfacts.co.uk, which compiled the data, began monitoring the sector in 2007.But while interest rates might be falling, banks are increasing the fees they charge borrowers to arrange a loan, with the average mortgage fee today being a full £68 higher than in June 2014 – hitting a 21-month high.Some of the fees borrowers are being asked to pay is nothing short of shocking – up to £7,499.“The current mortgage market boasts some of the lowest rates on record, which is great news for borrowers, but the increase in the average mortgage fee clearly shows that some of these headline grabbing rates are being compensated for elsewhere,” said Charlotte Nelson, from Moneyfacts.co.uk.“Some of the fees borrowers are being asked to pay are nothing short of shocking, with up to £7,499 being charged for some high value loans,” she added.interest rates mortgage interest rates mortgage rates fees April 12, 2016The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Mortgage rates hit nine-year low previous nextProducts & ServicesMortgage rates hit nine-year lowThe Negotiator12th April 20160563 Viewslast_img