Fees jump on fixed rate mortgages
Comparison website MoneyExpert.com calculated that average fees for fixed rate deal – called booking fees or arrangement fees – had shot up by 18.5 per cent since August 2006.
Sean Gardner, chief executive of MoneyExpert.com, accused mortgage lenders of exploiting nervous homeowners.
He claimed banks and building societies are attempting to capitalise on borrower demand for fixed rate loans, which has increased in the light of recent interest rate rises.
Fixed rate mortgages protect mortgage borrowers from the effect of rising rates.
But some lenders inist they are not exploiting customers, pointing out that, when interest rates rise, the cost of them providing fixed rate deals also goes up.