Mortgage fees have jumped almost 70 per cent over the past 12 months. The average mortgage arrangement fee now stands at a lofty £1,498, up from just £899 a year ago.

The move by banks and building societies to push up mortgage charges comes despite the base rate remaining static at 0.5 per cent.

The research by Moneyfacts shows that although the average fee has increased by 68.5 per cent, the fees on 90 per cent and 95 per cent mortgages have only risen by 11 per cent.

Moneyfacts spokesperson Sylvia Waycot recommends homebuyers researching the best mortgage deal should look at set-up charges and incentives such as free legal fees in addition to the headline interest rate.

‘In the excitement of buying a house it is easy to ignore arrangement fees but this could be a costly mistake especially if the fee is added to the mortgage loan,’ she says.

Although mortgage costs have risen on average, there are more mortgage products available now that have no arrangement fee. Last year there was a choice of 283 mortgages that did not charge arrangement fees, today that number has risen to 343. ‘However, very little is for free and no arrangement fee could mean a higher overall loan rate,’ warns Waycot.

‘The only way to properly compare is to ask your adviser for a “true cost” projection which takes into account all payments over the life of the mortgage.’

Samantha Baden, property analyst at Findaproperty.com, says the trend of lenders increasing their fees is another blow for people desperate to get onto the housing ladder. 

'With the end of the stamp duty holiday just around the corner, these mortgage fees are yet another stumbling block that young people will have to cope with before they can take their first step onto the property ladder.'

One of the lowest interest rates on a two-year fixed-rate mortgage that also doesn’t charge a fee is from NatWest Mortgage Services. It requires a 40 per cent deposit, has an interest rate of 3.15 per cent and there is no arrangement fee.

For the latest top mortgage deals, don’t miss Money Observer magazine. The February edition hits the shops this Thursday.