It said: "No-one has to pay an arrangement fee, as fee-free deals still exist. We have not discussed the level of arrangement fees with the Chancellor, although we have discussed the position of people coming off short term deals onto higher payments… Arrangement fees vary between different lenders and different mortgages. There is still a wide choice between mortgages with lower arrangement fees (and a potentially higher interest rate), and those with higher fees (often with a lower interest rate).
Different customers may have different preferences - for example, someone with a large mortgage may benefit from a higher upfront fee and lower monthly costs. What it is important to understand is the overall cost of the mortgage, taking into account both fees and rates - and the key facts document, given to all customers before they apply for a mortgage, provides this. UK mortgage customers continue to benefit from a good choice of mortgages, including hundreds of fee-free deals, even in the current difficult conditions in the mortgage market. Constraining the market to offer products priced in only one way would be detrimental to customer choice."
