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Mortgage costs up by one-third says Mform

23 November 2006
New online mortgage company mform has said the cost of a mortgage has risen by around one third since 2002-03.

Mform presents homeowners choosing a mortgage with analysis derived from Moneyfacts data to enable them to make informed comparisons on the grounds of rates, charges and lender service levels.

The company's research revealed that the average annual cost of a mortgage is around £6,284, compared to £4,711 three years ago.

Mform has argued mortgages are growing in cost largely because of rising property rises, as the Rightmove house price index reveals house prices rose another 12.4 per cent year-on-year from October to November, their fastest annual pace in two years.

Mortgage rates have also risen, the mform research finds, from 4.29 per cent in 2003 to 5.41 per cent today.

Mortgage application and exit fees have risen sharply, too, mform finds.

Chief executive Eamonn Rice said: "With so many loans to choose from it's possible to wipe hundreds or thousands of pounds a year off your repayments by just shopping around for the best deal."

For more information about the best mortgage deals, click here.

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