Average application rates for fixed mortgages have risen to £494; while those for discount mortgages have risen by 15% to £407.
It has been suggested that the rise in application fees is due to the lack of a rise in the base interest rate during the last 10 months, and that providers are trying to improve their profit margins.
Our view
There has been a significant move by lenders to try and make their mortgages look competitive by having attractive rates. The problem is that this is hiding higher fees. You need an expert to compare the costs of the interest rate and the effect of the fees with a higher rate, lower fee mortgage.
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