The UK is being collectively overcharged £23 million in mortgage transfer fees, research by broker John Charcol has shown.
The fees are charged for the transfer of funds to the buyer’s solicitor from the mortgage provider. The buyer’s solicitor then takes a cut for passing it to the seller’s solicitor.
These fees are not nominal amounts however, with the research showing that they are increased by up to 1,500 per cent in transit.
“Although most banks charge around £25 for one off electronic payments, large users such as mortgage lenders can negotiate a discount of around 90 per cent, so the real cost is under £3,” explained Ray Boulger, senior technical manager at John Charcol.
“In addition, those lenders that are clearing banks will not even incur this charge.
“With the number of mortgage transactions well over a million each year, borrowers are collectively overpaying for these fees by £23 million each year.”
John Charcol said that Intelligent Finance and Cheltenham & Gloucester were two suppliers whose best mortgage rates were not inflated by fees.
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