Warning as rates fall but arrangement fees soar

Figures show the average two-year fixed rate cost peaked at 7.08% on 11 July, and has fallen back to 6.9% today. However, Darren Cook, mortgage expert at Moneyfacts.co.uk, says arrangement fees are on the up, and could erode the savings made on headline rates. Moneyfacts.co.uk research indicates the average mortgage fee has increased by £100, equivalent to around 0.06% on a £150,000 repayment mortgage over two years. “Research conducted by Moneyfacts.co.uk has shown that some lenders have increased rates and fees and not brought either back down,” says Cook. “Other lenders have reduced ...