Across all mortgages fees have risen by 8 per cent in just four months, but on some of the most popular mortgages matters are far worse - the average fee on a five-year fix for those with a 25 per cent deposit is up an astonishing 30 per cent since January.
While headline mortgage interest rates slide lower and loans for those with smaller deposits are making a comeback, potential savings are being eaten away by the hefty fees charged upfront by providers.
The average mortgage fee has risen by £112 since the start of the year, or eight per cent, from £1,410 to £1,522. Financial data specialist Moneyfacts says this is the highest it has recorded in 25 years.
The rise in fees has been even steeper still in the hotly contested five-year fixed rate market at one of the key deposit benchmark levels.
Here, the average five-year fixed 75 per cent loan-to-value mortgage has fallen from 4.47 per cent in January 2013 to 3.54 per cent today.
But the average charge to obtain these mortgages has shot up 30 per cent from £964 to £1,258.
The rise in fees is in direct correlation to the celebrated recent return of higher loan-to-value mortgages and the widely published fall in interest rates.
Source: dailymail.co.uk
