11
Jun
Abbey's mortgage decisions 'could set a precedent'
Abbey's decision to introduce mortgage booking fees could be copied
by other lenders, independent mortgage brokers John Charcol has
warned.
"Consumers have been king for many years now, with lenders fighting
for their business, often at loss leading rates, but that has been
consigned to history and these booking fees are another stark
reminder of that," Drew Wotherspoon, a spokesperson for the firm,
stated.
His comments follow Abbey's announcement that from now on it will
be levying a non-refundable booking fee of £150 on its
mortgage range.
Moneysupermarket.com has also suggested that lenders could also
follow Abbey's lead in no longer allowing borrowers to add fees
onto a 95 per cent loan-to-value mortgage.
In a statement, a spokesperson for the website said this could act
as another obstacle on the road to home ownership for cash-strapped
first-time buyers.
