Fees still low on the agenda

Just two in five borrowers view mortgage fees as a key factor in their mortgage deliberations, according to a new study from Moneysupermarket.com.

This is despite two separate surveys this week showing that lenders have increasingly been opting to add fees to their products in recent months.

Moneysupermarket.com has said that 74 per cent of homeowners place major importance on the interest rate of their deal, yet just 40 per cent do the same when it comes to fees.

"It's of grave concern that homeowners are placing most importance on low interest rates. With fees having shot up over the past 12 months, people need to factor in the true cost of a mortgage rather than be tempted by the rate," said Louise Cuming, head of mortgages at Moneysupermarket.com.

On Wednesday Abbey Mortgages said that more borrowers are looking to long-term fixed-rate deals so that they can standardise their monthly repayments for as long as possible.

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