Mortgage incentives increase but so do fees, Moneyfacts

Since the beginning of November 2023, there has been an uptick in the range of fixed mortgage deals with incentives offered by lenders, according to

However, this period also saw an increase in the average fee for fixed rate mortgage deals. At the end of November, the average product fee (excluding no-fee products) stood at £1,108, marking a £21 rise from the start of the month.

The proportion of fixed rate mortgage deals including a free or refunded valuation incentive has climbed to 76%, a notable increase from 70% at the outset of November.

Deals offering free or refunded legal fees have also seen an increase to 44% from 42%.

Rachel Springall, finance expert at, said: “As interest rates on fixed mortgages gradually fall, it’s positive to see lenders are conscious of the incentives on offer to borrowers. However, borrowers need to be wary of the upfront cost of their mortgage as average mortgage fees have risen. There are fee-free deals out there and incentive packages could be ideal for borrowers who have limited funds to cover the cost of a new deal, some could even pay cashback. A free valuation incentive is offered on most fixed rate mortgages in the market. There are even more now compared to the start of November 2023, but in addition, there are now more deals that offer free legal fees, cashback or do not charge a product fee.

“Low-rate mortgages undoubtedly grab attention, but amid a cost-of-living crisis it is becoming ever more critical that borrowers find ways to save money upfront as well as over the lifetime of their mortgage. The average product fee stands above £1,000, and low-rate mortgages can carry some of the highest fees, so they may not be the best choice. Seeking independent financial advice is vital to assess the overall costs of any deal. 

“Borrowers looking to refinance could make substantial savings by switching their mortgage if they are sitting on their standard variable rate. If someone has little cash to pay for the upfront costs of a new deal, they can find fee-free offers or those that cover legal fees, a valuation or even pay cashback – there are even lenders who will offer all these combined. Those buying a home for the first time could well have exhausted their savings and may benefit from a mortgage deal with a bundle of incentives.”