Mortgage application fees ‘may impact upon secured loans’

Increasing mortgage application fees may take more than a year to pay off, a new study reveals.

According to research by moneysupermarket.com, those with high application charges could take up to 17 months just to pay the fee, meaning it takes longer for them to make mortgage repayments – which could result in an increased secured loan duration.

Head of mortgages Louise Cuming said: "Borrowers need to remember that not only will the fee take time to pay off, but it will also be subject to interest."

She added that consumers should "look beyond the monthly payments and instead on what will actually be paid off over the term of a deal".

Ms Cuming advised that potential property buyers should consider the "overall true-cost of the mortgage" before taking out a home and secured personal loan.

According to financial charity Credit Action, the value of secured loans taken out on property stood at £1,087 billion at the end of January, a growth of 11.5 per cent from the same time in 2006.

Interfinancial providing you with breaking secured loans news.