Mortgage fees rise again

Borrowers already struggling with tighter lending criteria are having to cope with increased mortgage application fees which have risen by 13% over the past two years. Research done by moneysupermarket.com has shown that application fees for Tracker and Fixed Rate mortgages have risen by 13% since September 2009. It would seem that as interest rates have fallen, lenders have increased the arrangements fees they charge for mortgages so that their profit margins are protected. This has lead to a situation where the mortgage product with the best headline interest rate may not actually be the best deal once fees are factored in. The ...