Mortgage arrangement fees 'difficult to avoid'

Date:Thursday 3rd December 2009
Author: Susanna Kavka

Mortgage arrangement fees are hard to avoid in the current economic climate, one industry expert has asserted.

According to Helen Adams, managing director of FirstRungNow.com, such charges vary from provider to provider.

However, she suggested that, regardless of where a consumer obtains a mortgage from, it is likely that they will still be faced with arrangement fees.

Ms Adams said that this is because lenders and advisers are finding it hard to place mortgages at the moment.

"Therefore, they need to claim back their costs of giving the advice, sorting through the mortgages and finding the best solutions, so it is difficult to avoid that completely," she concluded.

Ms Adams made her remarks following the recent publication of research by Moneyfacts, which showed that lenders have taken steps to increase the number of short-term mortgage deals on the market.

Other figures from the firm indicated that the average fee on a two-year mortgage deal is £911.