The number of lenders charging 'horrendous' mortgage arrangement fees and rocketed over the last year and a half according to a report by the comparison website MoneyExpert.com.
The report showed that in September 2006 fees of £750 or more were charged in just 22 fixed-rate mortgages. But since the 'credit crunch', this figure has shot up to 323, on the back of the number of available mortgage products tumbling. At the same time, average fees have increased from £517 in September '06 to £860 now.
And this average is small fry compared to some charges on the market. For example, Abbey's 5-year 7.04% fixed rate mortgage deal comes with charges of £2,499 and this must be paid upfront when the deposit is less than 15%.
Only fixed rate mortgages were looked at in the report, and only fixed rate charges. Some deals charge a percentage of the loan amount, so the actual rise could be far worse.
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