The chancellor wants firms to cut the amount they charge in one-off payments for homebuyers.
Mortgage lenders should not be charging borrowers unfairly high arrangement fees, the chancellor of the exchequer has said.
Alistair Darling made the remarks following a meeting with the Financial Services Authority (FSA) and the Council of Mortgage Lenders (CML), at which ways of helping to lift some of the financial burden currently borne by Britain's homebuyers were discussed.
The onset of the credit crunch has led to a marked contraction in the UK home loans market, with cheap deals being withdrawn and repayment rates being raised by many firms. Buyers are also being squeezed by the one-off arrangement fees being charged with their mortgages, which have been found to have risen by 66 per cent over the past 18 months despite little discernable changes to the services rendered.
Average fees in the UK now stand at £860, a total which can rise to £1,500 on some mortgages.
Mr Darling commented: "I'm very concerned that people ought to be treated fairly, especially people coming off fixed rates and going onto different rates. We have met the CML to try to reach an agreement to ensure that people are treated fairly, but if that isn't happening I will ask the FSA to pursue the matter.
"Everybody accepts there are costs that have to be met when they change over, but I think we have to make sure people are treated fairly and are not taken advantage of."
