Borrowers warned over mortgage fees

Prospective mortgage borrowers in the UK have been warned that hey could be charged non-refundable fees simply for applying for a particular home loan.

According to mform.co.uk, a number of high-street lenders are charging anyone who applies for a mortgage, regardless of whether their application is successful, which could increase the debt management burden facing those hoping to make a property purchase.

In fact, the online mortgage search service insists that would-be homebuyers across Britain could face non-refundable fees of around £750 if they apply for a mortgage worth close to £150,000.

“The picture on fees is becoming more and more confused and the issue of non-refundable fees adds to the confusion,” said Eamonn Rice, mform.co.uk’s chief executive.

“Losing £750 is a serious blow to most people’s finances,” he added.

Millions of British homeowners have seen their debt management difficulties worsen during the past year following five rises in the cost of borrowing since August 2006.