The average mortgage arrangement fee has increased by a massive 70% since March 2008, according to latest research by Moneyfacts.co.uk.
Over the past four years, the average fee has climbed steadily from £899 to £1,514, despite dipping briefly to £924 in September 2010.
Average mortgage rates have reduced by up to 2% over the four year period, in stark contrast to arrangement fees. In March 2008 the average two year fixed rate was 6.34%, significantly higher than today's 4.57%.
Sylvia Waycot, finance expert at Moneyfacts.co.uk, said: "There is no logical reason why fees should have increased so much. In the space of just August and September alone, they have increased by an average of £42.
"Mortgage administration costs can't have jumped 70%. Credit searches are no more complex than in previous years, so why are fees so high?"
Ms Waycot believes the rise could be because lenders are keen to gain money initially, regardless of fulfilling the full length of the mortgage term.
"It could be that lenders are keen to push fees because they are an upfront cost, which means they get the money at the start regardless of fulfilling the full length of a fixed term," she said.
"And should you not fulfil the full length of the fixed term, well that can open the door to a whole host of other upfront charges.
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