Data from moneyfacts.co.uk shows that mortgage products with no fees now make up 40 per cent of the market.
Jumping from 1,709 products from this time last year to 2,007 (an increase of 17 per cent), this, says Moneyfacts shows that despite mortgage rates remaining flat, providers are finding ways to entice borrowers.
Moneyfacts finance expert Charlotte Nelson says: “Providers have opted to keep rates relatively static, choosing to wait and see if a base rate rise will come to fruition.
“However, as the number of fee-free deals has increased, so too has the average fee, rising from £979 in May to £990 today. Providers have always used fees to compensate for a lower rate so, borrowers now must become wise to this tactic, particularly with more no-fee deals on the market.
“Ignoring the fee-free options on the market can be a costly mistake as fees can mount up, particularly if you remortgage multiple times over the lifetime of your mortgage. While many products allow you to add the fees to the deal, borrowers would then end up paying more in the long-run,” she continues.