More fixed-rate mortgages with fees to come?

Posted: 08 Sep 2009 10:10:35 GMT

The trend that has seen the number of fixed-rate mortgages that come with fees rise to 49 per cent is set to continue for a while, although this is "probably close to reaching its saturation point".

At least that is the opinion of Andy Pratt, chief operating officer at independent mortgage advisor Alexander Hall.

He claimed that the percentage may drop when there is more competition in this part of the market.

Commenting on the wider situation, Mr Pratt suggested that charging a percentage fee has never been a particularly welcome arrangement as larger loans will, of course, be more expensive for clients.

At the start of September, the Bank of England announced that the total number of new mortgage approvals grew from 47,891 in June to 50,123 in July.

It was also a step up from May's figure of 44,234, while remortgage approvals also increased month-on-month.

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