Daily Record

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WITH TRICIA PHILLIPS MORTGAGE lenders are competing with rock bottom interest rates on home loans – but it’s the opposite when it comes to fees.

Research from data firm Moneyfacts. co.uk shows the average mortgage fee is £1005 – the highest average recorded in more than five years.

Fees vary widely with some products free while others cost up to £1999. So it’s vital borrowers do their sums and ensure they really are getting the best deal.

A low interest rate with a high fee can be ideal for those with larger loans and over a longer term but not for people with smaller loans and over just two years.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “Despite the Bank of England increasing the base rate twice since November 2017 – from 0.25 per cent to 0.75 per cent – mortgage rates are still far lower than providers’ costs.

“For example, the average two-year fixed rate stands just 0.16 per cent higher than November 2017.

“By increasing fees, providers are making a small attempt to recoup some of this extra cost.” THE £10billion stock market flotation mobile operator O2 has of hold reportedly been put on until after Brexit. Owners Telefonica are said to be of holding off in the wake market uncertaint­y. DRIVEN Aston Martin boss Andy Palmer BUDGET hotel chain Premier Inn are launching half-size rooms costing from just £19 a night. The new Zip By Premier Inn hotels take no-frills to a new level, including guests having to pay if they want their room cleaned during their stay. Owner Whitbread insists they haven’t cut corners, with the pods created by the same design

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