Mortgage fees have 'nearly doubled in two years'
Mortgage fees have nearly doubled over the last two years, new
research has shown.
Figures from Moneyfacts.co.uk show that the average flat
arrangement now stands at £827 - up from just £441 in
The financial website's research also found that more and more
lenders are opting to introduce percentage fees, with some charging
up to 3.5 per cent.
A fee pegged at this rate could see a charge of £4,550 on a
loan of £130,000.
David Knight, mortgage analyst at Moneyfacts, said: "Thousands of
borrowers coming off a two-year fixed rate will be bracing
themselves for higher interest charges, with the best deals over
one per cent higher than in 2005.
"But they will also need to prepare themselves to pay much higher
In spite of the trend, however, borrowers can still find deals that
do not carry the charges, he added, but must be more savvy about
the criteria they use to select their loan.
Mr Knight said: "The increase in fees may not automatically mean
the cost of the deals has increased. What it does mean is the maze
which borrowers need to navigate to get the best deal has become
"Unfortunately too many borrowers still focus their initial
attention on getting the best rate, without taking full
consideration of the true cost of the deal."