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Mortgages fees doubled

29/11/2007

Over the last two years, mortgage fees have doubled over £800 on average.

Moneyfacts.co.uk show indications of the average flat arrangement fee to increase from £441 to £827 (November 2005 till today)

David Knight, from Moneyfacts commented: "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."

Data also indicates that more lenders are introducing percentage fees, with Northern Rock's fee currently at 3.5 per cent.

Today one in ten prime mortgages has a percentage fee, starting at 0.2 per cent. 24 per cent of mortgage deals present still have little or no fees.

David Knight added: "What it does mean is the maze which borrowers need to navigate to get the best deal has become more complicated. Many borrowers still focus their initial attention on getting the best rate, without taking full consideration of the true cost of the deal."

Moneysupermarket.com shows 40 per cent of property owners say fees are a priority when selecting a remortgage deal, remaining 74 per cent focus mainly on low interest rates.


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