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Mortgage fees soar by almost 20%

12th February 2007
By Julia Chan

UK home buyers are facing mortgage fees that have risen 20% in just six months, This Is Money has reported.

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The news site stated that the cost of remortgaging has significantly increased since the first of the Bank of England's three recent interest rate rises. Fees have soared by 18.5% since the first rise in the cost of borrowing occurred in August 2006.

Research conducted by the online financial comparison service Moneyexpert indicated that lenders have increased home loan charges alongside the rise in interest rates. In addition to this, the research revealed that the number of mortgages with fees below GBP500 dropped by over a quarter from 349 to 251, cited in This Is Money.

Sean Gardner, chief executive of MoneyExpert, said: "Homeowners are desperate to fix their mortgage rates to avoid incurring further costs caused by rising interest rates. It's the sensible option as further rises aren't out of the question.

"You could incur exit and application fees just for moving provider so check before you commit. These can be hefty and may mean the difference between staying put and moving on," he advised.

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