Though mortgage rates have fallen to record low levels since the Funding for Lending Scheme began in 2012, 'arrangement' fees have risen considerably - above £2,000 in some cases.
No-fee mortgages are regular fixed-rate or tracker mortgages that have no arrangement fee. Banks may offer a slightly higher fee, or offer no-fee mortgages as a loyalty package to current account customers.
No-fee mortgages allow you to save hundreds, if not thousands, of pounds that would have been spent during taking out the mortgage. You can even use this saving to make inroads into paying off your loan.