Which? urges Osborne to stamp out sneaky fees
Which? counted more than 40 different fees and charges across the market including booking, reservation and application fees, the three of which usually mean the same thing.
According to the consumer watchdog the cost of the average arrangement fee has almost doubled in the last five years from £878 to £1,588.
Which? asked Osborne to ensure that all compulsory fees over the lifetime of the mortgage are advertised at the outset of the deal, while the government should also insure that fees should reflect lenders’ actual costs.
Richard Lloyd, Which? executive director, said: “Homeowners could be paying over the odds for their mortgage because of the complex range of fees and charges that prevent them from finding the best deal.
“The Chancellor must act now to stop sneaky fees and charges and end mortgage confusion for consumers.
“The government and the regulator should also explore better ways of presenting the total cost of mortgages.”
Which? is running as ‘stop sneaky fees and charges’ campaign with the aim of reaching 40,000 signatures.