MoneySupermarket report that mortgage fees have risen by over 20% since 2009

Fees for tracker and fixed mortgages have gone up by over twenty percent since September 2009 according to the price comparison website MoneySupermarket. Because of this they say that the mortgage products with the lowest headline rates are not always the best deal in the long term.

Clare Francis, a mortgage expert with MoneySupermarket, says that it is important to include the set-up fees when you are looking at the cost of a mortgage. A product may have a low rate but if the arrangement and booking fees are very high then over the term of the mortgage it may work out more expensive than a product with a higher rate but low set-up costs.

She also said that set-up costs vary a great deal between providers so it is important that you actually work out the total amount you will be paying over the term of the deal. She added, though, that a lot depends on the amount a person wants to borrow. If you want to borrow a large amount then it may be worth paying a high fee so as to secure a lower rate of repayment. And this works the other way around with a smaller loan.