Its analysis of industry data revealed three years ago the average mortgage application fee was £281 as opposed to £634 today, a rise of 125.6 per cent. The average redemption fee today amongst the main lenders is £202 as opposed to £105.75 in 2003 – an increase of 91 per cent.
Eamonn Rice, chief executive at mform.co.uk, said: “When choosing a mortgage, it is very important to look beyond the headline rate. Some of those with the lowest rates have the highest application and exit fees and the least flexible terms and conditions.
“You need to consider a number of factors when choosing a mortgage, including its true cost, its features such as the ability to make early repayments and the service levels of the lender. mform’s service allows consumers to do all of this for free and they don’t need to provide their name or contact details to use the site.”
mform.co.uk’s analysis of industry data has revealed of the main lenders, none charged over £200 in standard redemption fees three years ago. However, today, around two thirds now charge this.
Exit fee / Percentage of main lenders who charged this during 2003 / Percentage of main lenders who charge this today
None / 17 per cent / 8 per cent
Between £1 and £100 / 33 per cent / 8 per cent
Between £101 and £150 / 33 per cent / -
Between £151 and £200 / 17 per cent / 17 per cent
Over £200 / None / 67 per cent
