View more on these topics

Average fee has shot up by 70% over four years

The average mortgage fee has shot up 70.3 per cent in the past four years, according to research from Moneyfacts.co.uk.

Prior to the base rate falling to 0.5 per cent in March 2009 the data firm says the average mortgage fee was £899 – it now stands at a whopping £1,514.

The average two-year fixed fee is £1,595 while the average five-year fixed rate fee is £1,014.

At the upper end of the scale, the largest fee is a five-year fixed rate at 3.79 per cent up to 75 per cent LTV, which carries a fee of £3,990.

Moneyfacts.co.uk spokeswoman Sylvia Waycot says: “There is no logical reason why fees should have increased so much. In the space of just August and September alone, they have increased by an average of £42.

“Mortgage administration costs cannot have jumped 70 per cent. Credit searches are no more complex than in previous years, so why are fees so high?

“It could be that lenders are keen to push fees because they are an upfront cost, which means they get the money at the start regardless of fulfilling the full length of a fixed term.”

Recommended

Only 1% rise in new advances for Q2 2012

New advances increased by 1 per cent in the second quarter to £37bn from £36.4bn the quarter before, according to the latest mortgage lending data from the FSA.

Mortgages for Business launches free iPhone App

Mortgages for Business has launched a free iPhone app called Buy To Let to give residential property instant access to buy-to-let mortgage rate information.

Letters

Targets are unnecessary if you have right people STAR LETTER I was quite astonished to read the scale of the some of the bonuses that had been paid out to financial services staff in the report on Mortgage Strategy Online last week about the FSA’s overhaul of sales incentive schemes following a year-long investigation into […]

Mortgages jump 53% for FTBs in £120,000 to £250,000 price band

The number of mortgages sold to first-time buyers for properties worth between £120,000 and £250,000 rose by 53 per cent between Q2 of 2011 and Q1 of 2012, according to the Financial Services Authority’s latest mortgage product sales data. The increase comes on the back of the Government’s freeze on stamp duty ending in March, […]

Newsletter

News and expert analysis straight to your inbox

Sign up