Press & PR

Thousands of British consumers have entered into a mortgage arrangement without realising that thousands of pounds worth of fees have been added to their overall debt burden, it has emerged.

According to a study from uSwitch.com, close to 900,000 people have found themselves owing far more to their mortgage provider than they thought and paying interest on the fees they have been charged.

In addition, more than 2.5 million mortgage borrowers have been left with little choice but to add the cost of arrangement fees, which are on average worth almost £1,000, to the overall value of their arrears.

"Adding fees to a mortgage means that you will be spreading the amount over many years and paying interest for the pleasure of doing so," said Ann Robinson, director of consumer policy at uSwitch.com.

"This is an extremely expensive option and should always be seen as a last resort," she added.

Meanwhile, a report from MoneyExpert recently revealed that typical mortgage fees are now worth 55 per cent more than they were in December 2006 when the base rate interest was last fixed at five per cent.

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