As banks continue raising their rates and adding fees, a low interest loan is becoming even more difficult for consumers to get. The fees attached to a low interest loan are starting to negate any saving benefits and for many, it is simply too expensive to try to get one of these loans at this time. Until banks start to offer low interest loans without excess fees attached, it may become almost impossible for many people to even find the right loan. Right now, for banks, it is all about limiting their risks and making more money to offset their losses.
Sean Gardner, director of MoneyExpert.com, said: “Such high mortgage application fees will come as something of a shock to many homebuyers. We’re just not used to these levels of charge. Anyone looking to remortgage or to buy a property for the first time will need to recalculate their options if they haven’t factored in fees.”
He continued, “Lenders are sick to death of risky borrowers and they won’t be taking any chances in the near future.
“That means high fees, high interest rates and very little manoeuvrability when it comes to negotiating your mortgage.”
Related reading: Low Interest Loan
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