UK mortgage fees up by average 17% since 2010

Latest figures from Moneyfacts.co.uk revealed that the average mortgage fee in the UK has grown by £151 over the past year.

Currently, the average arrangement fee stands at £1,030, up 17 percent year-on-year from last year.

Accord Mortgages posted the most expensive fee at £3,800, while Precise Mortgages charged the highest percentage fee at two percent.

It also found that only 12 percent of mortgages do not charge an arrangement fee.

Meanwhile, the average five-year fixed-rate mortgage fell below five percent for the first time since records started in 1988.

The average rate of a five-year fixed mortgage stands at 4.99 percent, with Chelsea Building Society launching a five-year fixed mortgage at 3.39 percent.

Additionally, the average two-year fixed rate has dropped to 4.24 percent, while the three-year fixed rate slipped to 4.74 percent.

“Unfortunately too many borrowers still focus their initial attention on getting the best rate, without taking full consideration of the true cost of the deal. In many cases a low rate with a high fee can work out more expensive than opting for a slightly higher rate, but with a lower fee,” said Michelle Slade, a spokesperson for Moneyfacts.co.uk.

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