Home loan fees in the UK have jumped 70 percent over the last four years, reaching the highest recorded level of £1,514 (S$3,002), according to consumer portal Moneyfacts.
Lenders are now being accused of profiteering as this signifies a huge increase from 2008’s average mortgage fee of £899 (S$1,782).
A Moneyfacts study also revealed that fees for the popular two-year fixed-rate loans were even higher, with borrowers paying £1,565 (S$3,099) on average to secure a deal.
While some of the highest fees were for loans with the most competitive rates, borrowers can still find mortgages that offer similar interest rates but with lower fees, if they shop around, the portal explained.
“There is no logical reason why fees should have increased so much,” said Sylvia Waycot of Moneyfacts, arguing that “mortgage administration costs can’t have jumped by 70 percent”.
“Credit searches are no more complex than in previous years, so why are fees so high,” questioned Waycot.
“It could be that lenders are keen to push fees because they are an upfront cost, which means they get the money at the start regardless of fulfilling the full length of a fixed term.”
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