The average cost of a mortgage fee has risen year-on-year, shows Moneyfacts data, while the number of deals with no product fees has shrunk.

Moneyfacts says that the average product fee, which excludes products with no fee, stood at £1,038 in Jun 2019 and then £1,018 in June 2020.

Today this stands at £1,075 – although this has gone down slightly from the £1,081 recorded in April 2021.

Meanwhile, in June 2019, 42% of all available mortgage deals boasted of having no fee. In June 2020 this stood at 40% and in June 2021, 35%.

At the same time, average rates at all LTVs – with and without fees – have risen in the 12 months to June this year.

With a fee, the average rate is up 0.65% – from 2.43% to 3.08% and, without a fee, from 2.32% to 2.87%.

Moneyfacts finance expert Eleanor Williams says: “House prices have continued to increase over the last year with recent research from Keller Williams UK indicating that in some parts of the UK, the average deposit required has increased by over £11,000.

“Lenders may be raising fees to gain margins in the aftermath of a fixed rate war, and this may also potentially be linked to the resurgence of sub-1% mortgages as, whilst eye-catchingly low, these initial rates can also carry the highest fees.

“Borrowers may be disappointed to see that average fixed rates have continued to rise of late, but overall, this may be attributable to the return of traditionally higher rated, higher LTV products.”