First-time buyers (FTBs) are set to be hit by larger fees when it comes to taking out mortgages, potentially leading to a surge in people seeking a fast property sale.
[UKPRwire, Wed Apr 23 2008] Mform has published research, showing that fees on the top five FTB mortgages have increased by a massive 35 per cent in a year.
In addition, FTB arrangement fees have increased markedly from an average of £637 last year to £857.
The increased costs are likely to put many FTBs off taking out mortgages and this in turn could lead to a surge in people seeking a fast property sale.
"These are tough times for first-time buyers. Lenders are generally asking for larger deposits and with fees and interest rates on the up, borrowers will need to be sure about their ability to meet these commitments before taking a step on to the property ladder," said Francis Ghiloni from mform.
"Potential borrowers need to be careful now more than ever to take into account the impact of fees on their mortgage in order to make sure that they have a clear idea of the true cost of their mortgage," he added.
Julian King of the UK's leading quick property sale company that guarantess to make an offer to purchase any UK property, National Homebuyers says, "It's not just FTBs that are affected. Property owners looking for a buyer hit a wall as they are unable to find buyers.
"Property prices will continue to fall as the limited number of available buyers call the shots. Equally, homeowners looking for a quick sale are in schtuck as they are unable to achieve the deadlines required in their property chain".
Mr King is a director of National Homebuyers. The company is the UK's leading fast property buyer which provides a series of solutions for homeowners who need a quick home sale or a Sell and Rent Back solution. Sell and Rent Back is a fast property sale product which means the homeowner can sell property quickly and remain living in their home.
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