Lately there have been better remortgage deals from lenders and it would seem an open book for homeowners to go in and grab a great offer not seen in years.  However, there are some cautionary warnings from experts on those looking to take advantage of all the remortgage and mortgage offers being made by lenders.  According to experts most homeowners and home buyers are looking mainly at the offered rates and are paying little attention to any arrangement fees that might be attached to deals.  This is a mistake warns experts as the borrower could be negating any savings by being hit by tacked on fees.

According to a recent research study conducted by Moneyfacts.co.uk, the average mortgage arrangement fee has increased by over 17 per cent in the last 12 months.  This will have cost borrowers an average increase in fees of £150 in the last year.  In August of last year, the study revealed that the average arrangement fee was £879 and the average now is £1,030.  The highest fee found recently on the market by Moneyfacts.co.uk was reported to be Accord Mortgages at £3,800. 

Michelle Slade, a spokesperson for Moneyfacts.co.uk, remarked “Lenders appear to be offsetting the low mortgage rates on offer by increasing the arrangement fees.

"The average arrangement fee has increased by 17% as lenders battle it out to offer the lowest headline rate.

"Percentage fees have become increasingly common, with one lender charging as much as 2%.

"Unfortunately too many borrowers still focus their initial attention on getting the best rate, without taking full consideration of the true cost of the deal.

"In many cases a low rate with a high fee can work out more expensive than opting for a slightly higher rate, but with a lower fee.

"Twelve per cent of mortgages charge no arrangement fee and many of these regularly appear in the Moneyfacts best buy tables, which are based on true cost.

"With 2,873 mortgages available there is a raft of rate/fee combinations for borrowers to consider.

"The key to deciphering the maze of thousands of mortgages and getting the best deal is for borrowers to do their homework and shop around."