Homebuyers need to be conscious of the implications of valuation fees when looking to move property, an industry expert has reported. According to Julia Harris, mortgage analyst for Moneyfacts, consumers - which may include those who have taken out a home and Secured loan - should be wary of all the applicable charges behind the house buying process. Ms Harris claimed that in addition to expenses such as higher lending charges and procuration fees, buyers need to remember that valuation costs can also increase the total cost of purchasing a home.



However, if this not taken into account it is possible that consumers may incur debt difficulties in the short-term future if they are unexpectedly with a fee which "has slipped through the net". She said: "As many first time buyers struggle to step on the housing ladder, lenders are using fee free deals to entice borrowers who are unable to afford the start-up costs. "But of course you will be paying for this by way of a higher rate."

The analyst also pointed out that when mortgage lenders offer such free valuations they are usually referring to a brief assessment which overlooks the general order of the home and compares the buyer's prospective property with similar housing. Ms Harris added that as a result these valuations make sure that "the lender is not advancing you more than the property is worth". "So although you are footing the bill, the lender receives the benefit," she claimed. However, those wanting a more comprehensive assessment of a house could be advised to opt for a homebuyer or full structural survey.

But with the extent of these evaluations varying across financial services providers, Ms Harris claimed that "if you do find yourself faced with paying a valuation fee, the cost varies considerably between lenders". Out of the ten mortgage providers surveyed by Moneyfacts, the difference in costs for a homebuyer report was reported to be as high as 345 pounds.

Meanwhile, this figure rose to 360 pounds for those carrying out a basic valuation. She reported that when based on a two-year deal for a 200,000 pound mortgage, such a difference is the equivalent of a 0.13 per cent rise in interest rates which can well impact upon consumers' ability to make repayments on secured and home loans. With "such large variations in the size of fees" Britons were advised to take the time to find the best secured loan product possible.

Ms Harris added that fees often "running into hundreds of pounds" in addition to "crippling" stamp duty and four digit arrangement costs, buyers need to be savvy when looking to borrow money. She suggested that consumers need to be aware of the full cost of the property buying process, otherwise they face being left in a "very vulnerable position".

"It's no wonder borrowers are struggling to find the upfront costs needed to move home or to step on to the property ladder," the analyst asserted. Earlier this week, director of mortgages for Alliance & Leicester Stephen Leonard reported that the effects of rising interest rates on secured and home loan repayments is directly impacting upon uptake of housing.