The average mortgage fee has reached the highest level for eight years with an increase of £61 year on year to £1,078, according to Moneyfacts.

The proportion of the market offering fixed rate mortgage deals that do not charge a fee has reduced from 42 per cent last November to 34 per cent at the start of this month. 

However, the percentage of the fixed rate mortgage market where free or refunded legal fees are has increased from 50 per cent last November to 54 per cent at the start of this month. 

The share of deals where a free valuation incentive is included is stable year-on-year at 69 per cent.

The proportion of deals that offer a cashback incentive has fallen to 25 per cent from 34 per cent a year ago. 

Average rates for fixed mortgage deals with a fee have increased by 0.51 percentage points since July to reach 2.8 per cent, but this remains 0.09 percentage points lower than a year ago.

Average rates for fixed rate deals with no fee have followed a similar pattern and are now 2.74 per cent.

Moneyfacts finance expert Eleanor Williams says that despite the increase in rates since July, there are still savings to be made.

But she points out that compared to the average SVR of 4.44 per cent, borrowers could save over £132 per month based on a £150,000 mortgage over 25 years.

Over two years this would equate to a saving of more than £3,000.

Williams says that fee increases are likely to be the result of lenders trying to gain additional margins in an environment where these were already slim following the significant fixed rate war of recent years.