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Mortgage fees and choice of incentives on the rise

by | Nov 30, 2023

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Lenders are offering more fixed deals with incentives since the start of November 2023, but analysis by also reveals the average mortgage fee has risen.

  • Mortgage product fees have risen on average. At £1,108, the average fee currently charged on a fixed rate mortgage deal (not including no-fee products) has risen by £21 since the start of November 2023. 
  • The proportion of the market offering fixed rate mortgage deals that offer a free or refunded valuation incentive has risen to 76%, up from 70% at the start of November 2023.
  • The proportion of the market offering fixed rate mortgage deals that offer a free or refunded legal fees incentive has risen to 44%, up from 42% at the start of November 2023.
Fixed mortgage market analysis
Average product fee £ (excluding deals with no fee)£1,088£1,107£1,087£1,108
Deals with no £ product fee1,696 (36%)1,350 (44%)1,690 (34%)1,767 (35%)
Deals with free/refunded legal fees2,111 (45%)1,502 (49%)2,050 (42%)2,216 (44%)
Deals with a free/refunded valuation3,417 (73%)2,264 (73%)3,434 (70%)3,809 (76%)
Deals with £ cashback1,569 (34%)1,128 (36%)1,225 (25%)1,317 (26%)
Average rate (deals with £ fee)2.94%6.21%6.44%6.23%
Average rate (deals with no £ fee)2.67%6.23%6.26%6.09%
The % shown is the proportion of deals out of the fixed mortgage market. Data shown is as at the first available day of the month, unless stated otherwise.Source: 

Rachel Springall, Finance Expert at, said: “As interest rates on fixed mortgages gradually fall, it’s positive to see lenders are conscious of the incentives on offer to borrowers. However, borrowers need to be wary of the upfront cost of their mortgage as average mortgage fees have risen. There are fee-free deals out there and incentive packages could be ideal for borrowers who have limited funds to cover the cost of a new deal, some could even pay cashback. A free valuation incentive is offered on most fixed rate mortgages in the market. There are even more now compared to the start of November 2023, but in addition, there are now more deals that offer free legal fees, cashback or do not charge a product fee.

“Low-rate mortgages undoubtedly grab attention, but amid a cost of living crisis it is becoming ever more critical that borrowers find ways to save money upfront as well as over the lifetime of their mortgage. The average product fee stands above £1,000, and low-rate mortgages can carry some of the highest fees, so they may not be the best choice. Seeking independent financial advice is vital to assess the overall costs of any deal. 

“Borrowers looking to refinance could make substantial savings by switching their mortgage if they are sitting on their standard variable rate. If someone has little cash to pay for the upfront costs of a new deal, they can find fee-free offers or those that cover legal fees, a valuation or even pay cashback – there are even lenders who will offer all these combined. Those buying a home for the first time could well have exhausted their savings and may benefit from a mortgage deal with a bundle of incentives.”

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