Mortgage lenders have increased their fees by more than 40% in the last six months as they seek to recoup profits lost on cut-price home loans. Borrowers getting cheap deals are being asked to pay inflated fees and charges. Mortgage brokers Charcol said the average charge for arranging a low interest mortgage has increased by more than £140 in six months to £480. Charcol’s senior technical manager Ray Boulger said: “What is clear is that in a hugely competitive market lenders will continue to try to conjure up new ways of generating extra income.”