Adding fees to your mortgage account will end up costing you more in the long-run, new research shows.
The study, conducted by uSwitch.com, found that anyone who put the average mortgage arrangement fee of £987 on to a 25-year mortgage will end up paying £2,094 in order to pay it off.
However, Ann Robinson, director of consumer policy at uSwitch.com, explained that for first time buyers adding fees to a mortgage can be useful.
She said: "In fact, by allowing consumers to add fees onto the mortgage, it could be argued that providers are doing them a good turn. This is particularly true for first time buyers where it could mean the difference between getting on the property ladder or not."
Ms Robinson added that despite this, the overall cost of adding fees to a mortgage account means that doing so should only be considered as a "last resort".
Yesterday, Phil Cliff, Abbey Mortgage director, advised first time buyers to place their deposit in a high interest savings account before they purchase a house .
Fees warning over mortgage cost
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