22-06-2007

Remember the forgotten mortgage fee

Those taking out a mortgage should remember the valuation fee, an expert has claimed.

According to Julia Harris, a mortgage analyst from Moneyfacts.co.uk, would-be mortgage holders should be aware of any deals offering a free valuation - an offer that may be attractive to first-time buyers - as the fee will generally be recovered in the form of a higher rate of interest.

"As we move away from a totally rate driven mortgage market, much focus has been placed on total cost, inclusive of rising arrangement and exit fees," said Ms Harris.

"But one fee, which perhaps we view as a service charge, has slipped through the net - the valuation fee," she added.

Although basic valuations are offered free by mortgage lenders, other higher specification surveys - known as full structural surveys and homebuyer surveys - are also available to potential borrowers.

Buy-to-let property investors should also take note and double check any mortgage offers.

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