Higher lending costing billions
Mortgage holders are being warned that higher lending charges imposed by banks are costing Brits billions in fees.
Nationwide Building Society estimates that since September 2000, UK borrowers have paid around £1 billion in higher lending charges and it says that this could have been avoided.
Currently, most financial providers charge higher interest rates on larger loans, usually to cover the risk of the loan, but some mortgage providers also charge a higher lending fee.
Usually, this is put upon customers who are looking to borrow more than 90 per cent of the cost of their property.
Nationwide says this is of particular concern to first time buyers, because of the estimated 800,000 who have been billed for higher lending, 500,000 are purchasing their first home.
First time buyers normally look for a larger mortgage because they often find it difficult to save up for a deposit, to put towards the mortgage.
Nationwide executive director, Stuart Bernau, said: 'Despite the negative publicity around higher lending fees, it is clear that many borrowers continue to find themselves faced with this charge at a time when their finances are already stretched and they are at their most vulnerable.
'Prospective borrowers should shop around for their mortgage and always ask the question: 'Will I be paying a higher lending charge?'.' | 
