The Sunday Times - Lenders drive down mortgage fees
Mortgage fees have fallen across the board for the first time in years, with average costs dropping by about £100 over the past 12 months.
Figures for The Sunday Times from the data firm Moneyfacts show that the average fee for a loan with a 40% deposit is £1,582, down from £1,671 a year ago.
This is the first annual fall since August 2010, when the average fee was £875.
The fee for a mortgage with a 25% deposit now averages £1,420, down from £1,560 a year ago and the first annual fall since 2009. Small-deposit borrowers have also seen a drop from £1,219 to £1,181 over the past year.
Aaron Strutt of the mortgage broker Trinity Financial said: “Over the past few years many lenders have been increasing their arrangement fees, so this is quite a change.
“Borrowers do not have to pay huge set-up costs any more to get a decent rate as banks and building societies are trying to attract new customers. As part of this process they are lowering mortgage set-up costs. Some even offer cashback.”
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