True cost of a mortgage rises 33%

The company which launches into the mortgage market today say the average annual cost of a mortgage is around £6,284, compared to £4,711 three years ago. It says the main reasons for the growing cost of mortgages are rising property prices and increasing rates on home loans. The average mortgage rate today is 5.41% compared to 4.29% three years ago and there has been a significant increase in the size of mortgage application and exit fees. The annual cost of servicing a mortgage has grown steadily in recent years from £4,711.20 in 2003 to £5,054.40 a year later, £5,928 in 2005 and £6,28...