Homeowners around the UK are being hit by “staggering” mortgage fees, it has been claimed.
According to research by uSwitch.com, the average amount charged in fees by lenders is around £1,000 and in many cases this figure doubles when added to the overall mortgage debt.
Some homeowners have found themselves facing fees initially worth more than £2,000 that rise to £4,000 when repaid over the length of the loan, the latest figures suggest.
For many the accumulation of these fees has made it more difficult to become debt free and almost 800,000 homeowners have been hit with these charges without realising.
“Adding fees to a mortgage means that you will be spreading the amount over many years and paying interest for the pleasure of doing so – this is an extremely expensive option and should always be seen as a last resort,” said Ann Robinson, director of consumer policy at uSwitch.com.
Figures released by Halifax last week showed that the average house price in the UK fell by around 2.5 per cent during March.