The average cost of a mortgage application has risen by nearly one quarter in the last 12 months, a report from MoneyExpert.com suggests.
The research from the specialist financial website claims that mortgage lenders are attempting to remain profitable, as well as provide best rates and products, despite low, steady interest rates.
The average fixed-rate mortgage arrangement costs £494 – an increase of 22 per cent, MoneyExpert.com says, while the arrangement fee for a discount mortgage currently stands at £407 – an increase of 15 per cent.
"Borrowers need to budget for application fees when they take out a mortgage," said MoneyExpert chief executive Sean Gardner.
"What you believe is a cheap deal saving you, for instance, £100 a month won't look quite so good when you add on application fees."
Mr Gardner noted that the base rate of interest had remained unmoved for almost a year, meaning mortgage providers were looking at new ways to maximise their profits on fixed-rate products.
"Researching your mortgage should include looking into fees as well as simply focusing on the headline interest rate," he added, saying that shopping around for the best deals was as important as making sure all applicable fees were included in your calculations.To read more about mortgages, click here.
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