The average fee charged on a fixed rate mortgage has increased by £48 since June, figures from Moneyfacts have shown.

Excluding fee-free deals, the average fee dropped from £1,040 in March to £1,018 in June before rising again to £1,066 this month.

August’s figure was also £16 higher than the same time last year when the average fee was £1,040.

Average rates on fixed deals with fees have reduced more significantly than rates on deals with no fees between March and August, falling by 35 basis points from 2.89 per cent to 2.54 per cent.

For deals with no fees, the average rate dropped by 19 basis points from 2.8 per cent to 2.61 per cent over the same period. 

The overall trajectory of average fees followed a similar path to rates which dropped to a record low in July before creeping upwards again, while product availability has remained under pressure.

Meanwhile the proportion of deals with no fee has remained broadly stable at around 40 per cent over the last six months.

The percentage of the fixed rate products offering free or refunded valuations increased from 71 per cent in March to 78 per cent in June before returning to 71 per cent this month.  

Meanwhile the share of deals offering free or refunded legal fees increased from 49 to 57 per cent from March to August and the proportion of products offering cashback dipped from 31 per cent to 27 per cent over the same timeframe.

The proportion of deals that offer a cashback incentive has fallen to 27 per cent, a 5 per cent drop since July.

Average rates for fixed mortgage deals, both with and without a fee, have increased by 0.25 per cent and 0.33 per cent respectively since July. However, these remain 0.35 per cent and 0.19 per cent lower than in March of this year.

Moneyfacts finance expert Eleanor Williams says: “With the UK having entered a recession, and concerns around employment and income growing, locking into a fixed rate mortgage deal could provide a household with security from potential interest rate increases, and stability with the ability to budget to a predictable monthly payment during a time of economic uncertainty.”

She points out that rates have been creeping upwards since July and they may continue to do so. 

“Compared to the average standard variable rate, which is 4.44 per cent currently, borrowers who switch from a revert rate to a new fixed deal now could potentially save in the region of £150 per month on their mortgage payments.”