Free mortgage perks on the wane - Mortgages - News - Moneyfacts


Free mortgage perks on the wane

Free mortgage perks on the wane

Category: Mortgages

Updated: 27/06/2012
First Published: 27/06/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Research from has revealed the gradual disappearance of free valuations and free legal fees from the remortgage market.

Comparing a two-year fixed rate mortgage in 2008 with today, the percentage of free valuations offered with a remortgage has dropped from 53% to 47% and for free legal fees it has also fallen from 51% to 44%.

The biggest drop was in the number of free accident, sickness and unemployment (ASU) insurance policies offered on today's products.

In 2008, 19% of mortgages offered ASU insurance; today it is almost a thing of the past as it is only available on 0.06% of mortgages.

"It's funny how things disappear without us noticing that they were even fading from sight," said Sylvia Waycot, spokesperson for However, that is what seems to be happening to free valuations and free legal fees for remortgages.

"It can be argued that the removal of these additional benefits is more than compensated for in the lower true cost of the mortgage.

"However, most remortgagers are looking to raise funds with the minimum outlay, so the decline in free valuations and legal fees will be a bitter blow.

"Less than half of two-year fixed rate mortgages now offer these benefits, so shopping around is vitally important.

"The demise of ASU insurance at a time when money is tight and people are worried about job security adds another layer of misery. This insurance provided protection for at least three months at no additional cost but it is now out of reach for many."

Find the best mortgage for you - Compare remortgage options

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.