Mortgage arrangement fees soar 42% as lenders cash in

‘MORTGAGE arrangement fees have surged more than 40 per cent in the past six months, as lenders attempt to shore up profits amid cut-price loans.

The average fee on a UK mortgage deal has soared almost 42 per cent to £480 at the start of 2005 from £339 in July last year, a new industry survey has shown.

That huge increase in the typical cost to consumers taking out the best fixed, discounted or tracker rates was the result of lenders vying to increase their income in a fiercely-competitive mortgage market, independent broker Charcol revealed.

Senior technical manager Ray Boulger said: “The UK mortgage market is arguably the most competitive in the world, with over 100 lenders vying for business.’

Read more at Mortgage arrangement fees soar 42% as lenders cash in

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