Financial information firm Moneyfacts reports that the banking giants have increased mortgage fees to their highest level since records began 25 years ago, with the average cost of arranging a mortgage now at more than £1,500.
Moneyfacts revealed that fees have risen by £112 over the last four months, an increase that the firm suggests is "hard to justify".
In fact, just five short yeas ago, the average arrangement fee was £874 - that makes today's costs nearly 75 per cent higher.
While the Government-backed Funding for Lending scheme has encouraged banks to increase their lending and interest rates on many mortgages at a record low, the sharp recent hike in fees means the benefits in many cases have been largely cancelled out, and some big-name lenders are now charging fees of more than £2,000 on their better mortgage deals.
Silvia Waycot of Moneyfacts warned homebuyers not to "get caught up in the excitement" of tempting low mortgage rates without first looking into the potential impact of such charges.
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