Latest Moneyfacts research has revealed that the average mortgage arrangement fee has almost doubled during the last two years. Figures from November 2005 showed an average flat arrangement fee at £441. Today it stands at £827, with a massive 9% of prime deals now charging a percentage fee. “Thousands of borrowers coming off a two year fixed rate will be bracing themselves for higher interest charges, with the best deals over 1% higher than in 2005. But they will also need to prepare themselves to pay much higher fees, with the average fee rising 100%.” The use of percentage fees has become more common, with 9% of all prime mortgage deals charging a percentage fee ranging between 0.2% and 3.5%. “Unfortunately too many borrowers still focus their initial attention on getting the best rate, without taking full consideration of the true cost of the deal,”
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