Find.co.uk revealed the average fee attached to a fixed rate mortgage had increased from £334 in February 2004, to £611 in February 2007.
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The research showed a disparity in lender fees, with Halifax charging £49 for a two-year fixed rate product, available at 6.69 per cent, while Bank of Scotland charged a fixed fee of £2,499 on its two-year fixed rates of 5.49 per cent and 5.60 per cent.
Kate Marsden, marketing director at find.co.uk, said: “Borrowers need to do their sums to calculate the total cost of a mortgage, including all fees, so they can compare like with like when assessing different deals.”
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David Black, head of banking at Defaqto, urged borrowers to consider all of the fees attached to a product before deciding on the best course of action.
He added: “Consumers need to not only take account of the headline rate, but also the application fee at the outset.”
Paul Fincham, head of media relations at HBOS, commented: “Comparing those two products is like comparing apples and pears. The £49 fee applies to small loans up to £50,000 while the other product is for larger loans. The arrangement fee is one of the factors we take into account when designing products to offer the best deal. It is very clear at every stage before completion what fees borrowers need to pay and they need to look at all associated costs.”
