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Mortgage fees increase 27% in three years

The average mortgage fee has increased by over £300, or 27 per cent, in the last three years, according to Moneyfacts research.

Its research shows that although residential mortgage rates have continued to fall in most cases compared to three years ago, mortgage fees are the highest since Moneyfacts records began over two decades ago.

The average mortgage fee is now £1,502, compared to £1,181 in 2009.

  March 2009 Today Difference
Number of mortgages 1,452 2,612 +1,160
Number of mortgages (90% LTV) 89 301 +212
Number of mortgages (85% LTV) 169 452 +283
Number of mortgages (75% LTV) 429 670 +241
Number of mortgages (60% LTV) 272 392 +120
Average 2 year fixed rate 4.79% 4.60% -0.19%
Average 5 year fixed rate 5.62% 4.82% -0.80%
Average 2 year tracker rate 3.54% 3.62% +0.08%
Average lifetime tracker rate 3.95% 3.71% -0.24%
Average mortgage fee £1,181 £1,502 +£321
Average credit card rate 17.7% 18.6% +0.9%
Average loan rate (£10,000) 9.5% 8.0% -1.5%
Average authorised overdraft rate 13.61% 15.25% +1.64%
Source: Moneyfacts.co.uk 2.4.12

A spokeswoman for Moneyfacts.co.uk says: “Over the last three years mortgage choice has almost doubled, which will be good news to prospective borrowers.

“While the number of mortgage deals has increased, fees are at their highest since Moneyfacts records began, so consumers need to check the true cost of any mortgage offer.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. The last sentence is the relevant point. The amount of the fee being charged is meaningless if considered in isolation, as the lenders use this fee to offset the interest rate and other features of the mortgage. An holistic view must be taken.

  2. What is the FSA doing to protect the customer??? Or are they the cause of these high fees? Why cant they be asked this by the media?

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