The possibility the remortgage market is staged for a boost over the next few months could be put on hold due to rising arrangement fees.  During the past year and a half, fees have increased some 500 pounds.  This has led many to look past remortgaging and investigate possibly purchasing a new home with incredibly low interest.

According to data analyst Moneyfacts, fees associated with a new mortgage have increased from 920 pounds early last year to almost 1,500 pounds today.  For many seeking a remortgage that much in fees is typically not in the budget.

It is common for those seeking a new deal to pay closest attention to the advertised rate instead of any arrangement fees connected to the rate.  This kind of advertising works until a client is actually ready to close and fully understands what it will cost them.

Daniel Bailey of Derbyshire firm Middleton Finance commented on the feeling of clients he is currently seeing, saying: "In my experience, clients are being put off by the higher arrangement fees and feel loth to pay these high fees to the banks."

Bailey added: "The majority of my clients are based in the north and their mortgages are not as high generally as in the south. Paying the higher arrangement fees may be more cost-effective for clients in the south with higher mortgages."

For many, it is a case of being able to afford a large up-front arrangement fee when the advertised interest rate is super low.  For those who simply cannot afford the big fee, higher interest will be an accepted part of the loan.