You are here: Home - Mortgages - First Time Buyer - News -

Mortgage fees up 27% since 2009

Written by:
The average mortgage fee has risen by 27% in the last three years, research has shown.

According to financial information firm Moneyfacts, between March 2009 and today the average mortgage fee rose from £1,181 to £1,302, an increase of £321.

A spokesman for Nationwide said that fees on the mortgages they offered had in general not risen: “I think overall we believe our product fees are lower than they were three years ago.”

Ian Gray, mortgage manager at added: “The analysis reflects a wide variety of fees, some large and some based on a percentage of the loan. The average is skewed by percentage fees.”

Gray said that a good way to get deals is to open a bank account with the lender.

“What I have been seeing very recently is that people are getting much lower fees if they get a bank account with the lender.”

Other lenders, NatWest and Northern Rock also said that typical arrangement fees have remained below the £1,000 mark.

Moneyfacts also found an 80% rise in the number of residential mortgages, from 1,452 in 2009 to 2,612 today.

The number of 90% LTV mortgages more than tripled while the number of 85% LTV mortgages was two and a half times what it had been in 2009.

Fees: the worst offenders

1. PMS – completion rates of up to £3,800

2. Pink Home Loans – arrangement fees of up to £2,995

3. Precise Mortgages – arrangement fees up to £1,995

4. Halifax – arrangement fees of £1495 plus completion fees of £245

5. Lloyds TSB Scotland – arrangement fees £1495 plus booking £99 Figures based on variable rate mortgage data compiled by Moneyfacts

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Deutsche Bank ETPs win awards

Deutsche Bank products have won three out of five exchange traded product (ETP) categories at the Financial Times and Investors...