11 Jun

Abbey's mortgage decisions 'could set a precedent'

Abbey's mortgage decisions 'could set a precedent'

Abbey's decision to introduce mortgage booking fees could be copied by other lenders, independent mortgage brokers John Charcol has warned.

"Consumers have been king for many years now, with lenders fighting for their business, often at loss leading rates, but that has been consigned to history and these booking fees are another stark reminder of that," Drew Wotherspoon, a spokesperson for the firm, stated.

His comments follow Abbey's announcement that from now on it will be levying a non-refundable booking fee of £150 on its mortgage range.

Moneysupermarket.com has also suggested that lenders could also follow Abbey's lead in no longer allowing borrowers to add fees onto a 95 per cent loan-to-value mortgage.

In a statement, a spokesperson for the website said this could act as another obstacle on the road to home ownership for cash-strapped first-time buyers.

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