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    years. Add the lenders fees of ?1,499 and the overall cost is ?6,505

    Example 1b: - Again, based on a mortgage of ?56,000 and someo
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    An analysis conducted recently in the UK prompted the article, as it identified that fee-free UK mortgage offers are more expensive than deals with an application fee for consumers with a mortgage of ?57,000 or more. This is because the interest rate is usually higher. With the average new mortgage loan now at just below ?140,000, opting for a fee-free mortgage deal could cost many borrowers dear.

    Fee-free UK Mortgages Comparison

    Example 1a: - Based on a mortgage of ?56,000 and someone taking out a two year fixed rate of 4.47%, they would end up paying ?5,005 in interest in the first two years. Add the lenders fees of ?1,499 and the overall cost is ?6,505

    Example 1b: - Again, based on a mortgage of ?56,000 and someon
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    pplication fee for consumers with a mortgage of ?57,000 or more. This is because the interest rate is usually higher. With the average new mortgage loan now at just below ?140,000, opting for a fee-free mortgage deal could cost many borrowers dear.

    Fee-free UK Mortgages Comparison

    Example 1a: - Based on a mortgage of ?56,000 and someone taking out a two year fixed rate of 4.47%, they would end up paying ?5,005 in interest in the first two years. Add the lenders fees of ?1,499 and the overall cost is ?6,505

    Example 1b: - Again, based on a mortgage of ?56,000 and someo
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    just below ?140,000, opting for a fee-free mortgage deal could cost many borrowers dear.

    Fee-free UK Mortgages Comparison

    Example 1a: - Based on a mortgage of ?56,000 and someone taking out a two year fixed rate of 4.47%, they would end up paying ?5,005 in interest in the first two years. Add the lenders fees of ?1,499 and the overall cost is ?6,505

    Example 1b: - Again, based on a mortgage of ?56,000 and someo
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    le 1a: - Based on a mortgage of ?56,000 and someone taking out a two year fixed rate of 4.47%, they would end up paying ?5,005 in interest in the first two years. Add the lenders fees of ?1,499 and the overall cost is ?6,505

    Example 1b: - Again, based on a mortgage of ?56,000 and someo
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    years. Add the lenders fees of ?1,499 and the overall cost is ?6,505

    Example 1b: - Again, based on a mortgage of ?56,000 and someone taking out a two year fixed rate of 5.35% but fee free, they would end up paying ?5,992 in interest in the first two years.

    Using the same situation as above but based on the average new UK mortgage of ?138,000, the figures work out as follows:

    Example 2a: - A borrower taking out a two-year fix at 4.47% and paying fees would pay ?13,838 over the two years.

    Example 2b: - The same borrower taking out a 5.35% two-year fix and not paying fees, would cost ?14,766.

    It all goes to show that the bigger the mortgage, the more money you will save by choosing the low-interest opt

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