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High fees for fixed-rate mortgages 'increasingly common'

By Jonathan Dawes, Thu 12 Jun 2008 - Published in Mortgages

The number of fixed-rate loans with high fees has rocketed by 1,368 per cent over the past 18 months, according to new research.

The number of fixed mortgage deals charging application fees of £750 or more has risen from 22 to 323 since September 2006, MoneyExpert.com has reported.

It states that this means 34 per cent of the total fixed-rate loan market charges these higher fees.

Sean Gardner from the website said: "The days of fee-free mortgages are over and frankly getting anything under £1,000 is something of a coup."

He adds that, with stamp duty reaching an average of £4,950, moving is becoming more and more expensive.

Mr Gardner advises that anyone looking to remortgage or buy a property for the first time should "recalculate their options if they haven't factored in fees".

The Council of Mortgage Lenders has reported that the proportion of fixed-rate loan agreements increased during April as borrowers made security over future mortgage repayments a priority.