The next highest was Yorkshire and Humberside, which has seen the cost of typical mortgages increase by around 30 per cent during this period, against a national average of 24 per cent.
Eamonn Rice, chief executive of mform.co.uk said: “The amount of money we spend on our mortgages is rising sharply, but with such a variety of different home loans to choose from and by shopping around for the best deal, people can keep a check on this or even dramatically reduce their repayments. However, when choosing a mortgage, it is imperative that you understand its true cost – and this means properly taking into account any discounts being offered and the charges being applied.”
mform.co.uk aims to enable people to identify the best mortgage for them on the basis of features, rates, charges and lender service levels. It warns that the size of mortgage repayments is rising sharply because of a number of factors including:
Rising property prices: According to the latest figures from the Department for Communities and Local Government, the average price of a typical property rose to £198,552 during September, which puts the annual rate of house-price inflation at 8%. This means that people are increasingly having to borrow more in order to purchase the property they want. Indeed, some lenders will now lend you five times your annual income.
Rising rates on mortgages: This year the Bank of England base rate has risen by 0.5% which means that someone with a variable rate mortgage of £200,000 could have seen their annual mortgage repayments increase by around £1,000.
An increase in the size of mortgage application and exit fees: In recent years, these have risen steadily. mform.co.uk’s analysis of industry data revealed that three years ago the average mortgage application fee was £281 as opposed to £634 today and over this period, the average exit fee has risen from £105.75 to £202 today.
mform.co.uk offers consumers a free, unique and innovative online service enabling them to conduct the most comprehensive search of mortgages available. It allows people to identify all of the key features and benefits of a mortgage, and ultimately its true cost in terms of rates and charges. mform.co.uk uses data supplied by Moneyfacts, to help consumers develop a list of best-buy mortgages that meet their specific needs. It will also provide information on the standard of service from lenders, and there are no sponsored links or distracting adverts from lenders on the website as mform feels that these could unfairly influence a person’s choice of mortgage. Users of the service are able to link directly with key lenders’ mortgage application departments.
