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Mortgage borrowers warned against being ‘hypnotised’ by headline rates as fees rise | Personal Finance | Finance

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Borrowers are being warned against the increasing number of low-rate high-fee deals on the market as they may not be entirely beneficial.

Virgin Money has most recently launched a string of new fixed-rate mortgages with a one percent fee, which brokers have likened to “taking a leaf out of Skipton’s book”.

However, these additional fees can carry a “nasty sting in the tail”, some brokers have warned.

Writing on platform Newspage, Andrew Montlake, managing director at Coreco, said: “Many consumers have been hypnotised by a low headline rate only to find that the fee or associated conditions carry a nasty sting in the tail, especially when they only pay attention to one column of a ‘Best Buys’ table.”

While percentage fees “do have a place” within product choice and can work in some borrowers’ favour – dependent on the loan amount, Mr Montlake said: “The calculations need to be run and carefully compared.”

Mr Montlake added: “Over the coming weeks and months there will be an interesting battle between lenders who will utilise a whole array of different mortgage products to entice borrowers, and following a calm voice of advice through the cacophony of noise is going to be essential.”

Ranald Mitchell, director at Norwich-based Charwin Private Clients, weighed in: “Product design is going to become a major factor as lenders try to find innovative new ways to sell mortgages and stimulate the market back into action.

“The shifting of interest to added fees is gaining momentum and will undoubtedly benefit some mortgage seekers, while not benefiting others. Buyer beware. In 2024, it will become trickier than ever to cut through the noise and make good decisions. Get advice.”

However, Jamie Thompson, director at Jamie Thompson Mortgages, went one further, saying: “I fear that, a few years from now, this could be the next big mis-selling scandal.

“There will absolutely be cases where this is the right thing to do for the customer, but any adviser recommending it will be writing War and Peace to demonstrate why it’s the right thing to do if they want to be sure their advice is watertight.”

A mortgage product fee is an upfront cost linked to a specific mortgage deal. Typically, mortgages with product fees come with lower , resulting in reduced monthly payments.

Skipton’s new , which is aimed at members at risk of payment difficulties, offers rates starting as low as 3.35 percent at 60 percent Loan to Value (LTV). However, the deals come with a fee of five percent of the existing loan amount, which the mutual says can be added to the mortgage balance.

Despite offering fee-free options on all its ranges, Skipton Building Society said “over half” of its borrowers chose mortgages with a fee to help keep their monthly payments as low as possible.

But before jumping into any mortgage deals, it’s important people weigh up all the costs – short-term and long-term – to avoid racking up “thousands” of pounds more debt.

Jamie Alexander, mortgage director at Alexander Southwell Mortgage Services, said: “It’s imperative for potential buyers to understand that when arrangement fees are pegged as a percentage of the mortgage, the ensuing costs can easily run into the thousands.”

Justin Moy, managing director at EHF Mortgages, added: “Choosing a mortgage product without advice, and being influenced by the headline rate, is financially dangerous and really not the way to be dealing with your most important debt.”



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South Korea Probe Finds Jets Collided As Pilots Took Photos During Flight

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April 22, 2026

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South Korean authorities have found that two fighter jets collided mid-air in 2021 because the pilots were taking pictures and videos during a mission, BBC reported, citing a report by Seoul’s Board of Audit and Inspection.

The incident took place near the central city of Daegu. Although all pilots survived without injuries, the collision caused damage worth 880 million won ($596,000) to the aircraft.

According to the report published on Wednesday, one of the pilots, who has since left the military, was fined 88 million won after being held primarily responsible for the accident.

ALSO READ: India, South Korea To Upgrade Current FTA With Eye To Double Trade By 2030

The audit found that the pilot of the wingman aircraft wanted to take photographs to commemorate his last flight with the military unit. The report noted that taking photos during significant flights was a widespread practice among pilots at the time.

The pilot reportedly informed others of his plan during a pre-flight briefing. While returning to base, he began taking pictures using his personal mobile phone.

After noticing this, the pilot of the lead aircraft asked another crew member to record a video of the wingman jet, according to the report.

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The wingman pilot then made a sudden manoeuvre by climbing higher and rolling the aircraft to improve the camera angle. This brought the two F-15K jets dangerously close.

The lead aircraft attempted to descend quickly to avoid a collision, but the two jets eventually struck each other. The crash damaged the lead aircraft’s left wing and the wingman aircraft’s tail stabiliser.

ALSO READ: Russian Missiles Fly Near Chernobyl, Ukraine Warns of ‘Nuclear Catastrophe’ Risk: Report

The South Korean Air Force suspended the wingman pilot, who later left the military to join a commercial airline.

Initially, the Air Force sought to recover the full repair cost of 880 million won from the pilot. However, after he appealed, the Board of Audit and Inspection ruled that he should only pay one-tenth of the amount.

The pilot admitted that his sudden manoeuvre contributed to the collision, but argued that the lead aircraft pilot had “tacitly consented” because he knew filming was taking place.

The audit board said the Air Force should also bear some responsibility for failing to regulate pilots’ personal use of cameras during flights.

The board further noted that the pilot had maintained a good service record before the incident and had managed to safely return his aircraft to base, preventing further damage.

The report did not specify whether any disciplinary action was taken against the other pilots involved.

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S&P, Nasdaq Rise On Iran Ceasefire Extension; Dow Jumps 400 Points

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April 22, 2026

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The main Wall Street indices jumped in early trade on Wednesday, as the US stock market reacted positively to President Donald Trump’s decision to extend the ceasefire with Iran.

S&P 500 rose 0.7%, or 49 points, to 7,112.2 minutes after the opening bell, whereas the tech-heavy Nasdaq Composite climbed 0.72%, or 175.18 points, to 24,435.15.

The Dow Jones Industrial Average rose 436.44 points to 49,585.82 at 9:40 am EST.

(This is a developing story)

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Trump Extends Iran Ceasefire To Three To Five Days

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April 22, 2026

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The statement by US President Donald Trump read:

“Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal.”

“I have therefore directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other.”





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