HSBC who launched the ‘rate matcher’ mortgage to help struggling homeowners make repayments are now introducing arrangements fees of up to £9,999 for the privilege of the product.

Ironically this product was marketed as a way of helping homeowners who wouldn’t have coped with current mortgage rates. The ‘rate-matcher’ deal offers borrowers a fixed rate mortgage at the same rate they had previously taken out.

Lenders have come under fire recently because of the high fees involved in taking out many mortgage deals, especially when consumers are facing such crippling economic times, the Chancellor called upon banks and mortgage lenders to start treating borrowers fairly. Though lenders are fighting back, blaming the increasing cost of mortgage funding.