The last six months saw the average fee for all mortgages rise from £927 to £967, almost hitting the peak of £970 seen two years ago.
Fixed mortgage fees rose even more sharply in the last six months, up from an average £935 to £975 currently and passing the £958 peak of two years ago.
Rachel Springall, finance expert at Moneyfacts.co.uk, said the rise is likely due to the influx of low rate mortgage deals which come with larger upfront fees.
“For instance, the six lowest two-year fixed rate mortgages have an average fee of £1,483, which sits some way above the average two-year fixed fee overall of £1,062,” said Springall.
“Taking out one of these low-rate deals may therefore not be as cost-effective as it would first appear, particularly if the borrower is not looking to secure a very large mortgage amount.”
However, she said borrowers don’t necessarily have to pay the large fees and can opt for mortgages with more manageable costs or none at all.
