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Mortgage application fees up £350

The average mortgage application fee has risen markedly in the past three years, new research shows.

Figures from Mform.co.uk, an online comparison site, indicate that the cost of the average mortgage application has climbed £353 or 126 per cent since 2003.

The average fee now stands at £634, compared to £281 three years ago, suggesting that the battle among lenders to keep interest rates low is being recouped elsewhere.

Average redemption fees have also climbed sharply during the period, up 91 per cent from £105.75 to £202.

"When choosing a mortgage, it is very important to look beyond the headline rate," said Mform chief executive Eamonn Rice.

"Some of those with the lowest rates have the highest application and exit fees and the least flexible terms and conditions."

However, interest rates on mortgages have risen steadily in the past three years, up from an average of 4.29 per cent in 2003 to 5.41 per cent now.

"Some of those with the lowest rates have the highest application and exit fees and the least flexible terms and conditions."

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28/11/2006 12:39:12

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