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Fees on fixed rate mortgages have rocketed, says Moneyexpert.com

There has been a dramatic increase in the number of fixed rate mortgages with fees above £750 since the credit crunch took hold, says Moneyexpert.com.

Between the start of September 2006 and June this year, the number of fixed rate mortgages with fees over £750 has gone from 23 to 323, which is 34 per cent of the total fixed rate market, according to MoneyExpert.com.

The website also says the average application fees on fixed mortgages have risen by 66 per cent over the same period, from £517.19 in September 2006 to £860.25 now.

The highest stipulated fee 18 months ago was £1,499 on Halifax’s two-year fixed mortgage for homeowners with a 25 per cent deposit or more.

But now the Halifax charges a fee of £3,999 on a three-year fixed deal for its existing customers who have homes worth between £500,000 and £2m.

MoneyExpert.com director Sean Gardner says: “Such high mortgage application fees will come as something of a shock to many homebuyers. We’re just not used to these levels of charge.

“Anyone looking to remortgage or to buy a property for the first time will need to recalculate their options if they haven’t factored in fees.

“The days of fee-free mortgages are over and frankly getting anything under £1,000 is something of a coup. “

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