More and more borrowers are now looking beyond the traditional lenders in order to get a better deal, and new research has pointed to another reason to shop around when looking for a mortgage.

 

Financial research website Moneyfacts has said that there has been a sharp increase in the cost of arrangement fees charged by banks over the past few years.

 

Back in 2001 the average fee was just £295, but can now range from anywhere between just under £1,000 and just under £2,000, according to the Daily Telegraph.

 

"There has been staggering inflation in fees. The banks have been very naughty and percentage fees are atrocious," MoneySavingExpert founder Martin Lewis told the newspaper.

 

Separate research has shown that almost half a million mortgage payments were missed in the past six months, but many lenders are still offering numerous innovative deals as part of an attempt to aid homebuyers in their quest for affordability.