The average mortgage arrangement fee has increased by 70% since March 2008, according to Moneyfacts.

Since that time, the average fee has climbed from £899 to £1,514; however, there was a brief dip to £924 in September 2010.

Average mortgage rates have reduced by up to 2% over the four year period. In March 2008 the average two year fixed rate was 6.34%, compared to 4.57% at present.

“There is no logical reason why fees should have increased so much. In the space of just August and September alone, they have increased by an average of £42,” said Sylvia Waycot from Moneyfacts.

“Mortgage administration costs can’t have jumped 70%. Credit searches are no more complex than in previous years, so why are fees so high?”

She added:”It could be that lenders are keen to push fees because they are an upfront cost, which means they get the money at the start regardless of fulfilling the full length of a fixed term.

“And should you not fulfil the full length of the fixed term, well that can open the door to a whole host of other upfront charges.”