14 Aug

Nationwide upfront fees "may be in the borrower's interests"

Nationwide upfront fees "may be in the borrower's interests"

Nationwide's plans to charge borrowers an upfront fee in order to secure a mortgage may be beneficial for consumers, according to a property expert.

Louise Cuming, head of mortgages at moneysupermarket.com, said that many customers do not appreciate the damage multiple mortgage applications can have on their credit profiles, so an upfront fee could be in their interests.

A current concern among lenders is that borrowers will be tempted to apply to various mortgage providers in order to increase their chances of securing a product.

"With a good credit history being worth its weight in gold at the moment, a small upfront fee might be of as much benefit to the consumer as it is the provider," said Ms Cuming.

These comments come after Nationwide last week announced its decision to cut the rates on 44 of its fixed-rate and tracker mortgage products by up to 0.5 per cent in an attempt to provide better value to new borrowers.
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