Mortgage fees rise in competitive market

Mortgage fees could be as high as £2,700 by 2016 if they continue to creep up at the pace they’ve sustained over the past 10 years, according to Moneyfacts.co.uk.

It says 10 years ago fees averaged £300. Today this has trebled to £900. Combined with Stamp Duty and further interest rate rises, it says changing home or switching lenders will become increasingly costly.

A spokeswoman for Moneyfacts.co. uk says: “With competition driving down profit margins on rates, lenders have sought to recoup income by means of higher fees. Not only have flat fees risen but there is also a trend for lenders to use percentage fees – now up to 2.5% of the mortgage advance.”