Mortgage fees have ‘doubled in a year’

Posted 2008-04-20

Application fees on the best value fixed-rate mortgage deals have nearly doubled in the past year, according to new research.

A report, conducted by mform.co.uk, has revealed that fees on the five most competitive fixed two-year deals have moved from an average £999 to £1,478, while the average fees for three-year deals have moved from £578 to £1,132.

Francis Ghiloni, mform.co.uks marketing and business development director, said that the "panic" of recent weeks in the mortgage market may have encouraged people to grab the best deal they can and "focus on rates to exclusion of everything else".

He added: "They could be in for a nasty shock when it comes to the fee which is charged as they have rocketed in the past year. They should be focusing on the true cost of their loan taking into account fees as well.

"There are still good deals out there for people with strong credit ratings and with substantial deposits or equity in their home. Unfortunately many will not be eligible for them as lenders are increasingly taking a hard line."

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