Warning to buyers as mortgage fees double in two years

HOMEBUYERS are being warned to watch out for mortgage fees, which have typically doubled over the last two years according to research from Moneyfacts.co.uk. The average flat mortgage arrangement fee stands at £827, compared to just £441 in November 2005.

Almost one in 10 mortgage deals now charges a percentage fee of up to 3.5%. However, fees do not necessarily mean the price of mortgage deals has increased overall. The best mortgage deals have risen in price by only about 1% since November 2005. However, there was more bad news for borrowers with poor credit histories. Two thirds of lenders providing them with mortgages have disappeared as the credit crunch has worsened.

Cheque mates

Current account customers are to receive greater protection against being the victim of a fraudulent cheque.

Despite the growth in electronic transmission, cheques remain popular, with five million cleared each day.

However, account holders have often been wary of accepting cheques because in the past, even after the money had been credited to their account, if the cheque was dud the money could be taken back.

Now the banks have agreed that whether the cheque if fraudulent or not, after six days the money is yours.

Top-up revealed

The Government will attempt to make it easier for employees to understand how much of a second state top-up pension they will receive as part of measures announced when the Pensions Bill is published this week.

All entitlements earned before 2012 will be consolidated, enabling employees due to retire after 2020 to plan with more certainty.

Pension split

Pensions consultants Mercer have developed a new approach to retirement saving by allowing employees to split their combined employer and employee pension contributions between their pension plan and a general savings plan. Employees can use the assets they amass in the plan to invest in anything from housing to debt repayment or ISAs.

Kids coin it in

Two fifths of Scottish kids receive up to £50 per week from their parents and one in 10 get even more, according to the Royal Bank of Scotland.