The cost of applying for a UK mortgage has risen considerably in the past three years alone ? in addition to a steady increase prior to this period. The hike in application fees has occurred despite UK mortgage lenders cashing in on increased earnings via interest collected thanks to soaring property prices and increasing average mortgage balances.

In addition to the increase in UK mortgage arrangement fees - the cost of exiting a mortgage - has risen considerably within the same three year period.

The cost of redeeming a UK mortgage during a fixed interest rate period can be as high as 5% of the balance of the mortgage. A UK mortgage that is redeemed without an early repayment charge can still cost the borrower several hundred pounds, particularly if there is a remortgage involved.

Lenders seem to be attempting to find as many different avenues as possible to add extra fees on to mortgage products. When one set of fees decreases, application fees for example, another set of fees such as redemptions penalties will increase. It is clear that fees are a necessary income stream for lenders so it is difficult to foresee a time when they will stop increasing.

This is particularly the case because a more competitive UK mortgage market has lead to a situation in which lenders must compete on the interest rates they offer. This means that they are no longer deriving all their income from the interest they charge. Home owners have benefited from the increased competition through lower interest rates, however, this has not translates into lower mortgage fees.

Because fees now comprise a significant expense to borrowers it is important to include them in any mortgage comparison when assessing which UK mortgage is the best for their particular circumstances. It is no longer good enough to simply compare the headline interest rate.

The true cost of a UK mortgage is demonstrated by the Annual Percentage Rate (APR). The APR presents a truer representation of the true cost of a UK mortgage than the headline interest rate meaning that the lower the APR, the more cost-effective the mortgage is.

However, it is still not good enough to base a decision solely on comparing APRs of competing UK mortgage products. Other factors, such as the service levels of the lender and the flexibility of the UK mortgage, should also be taken into account.

Selecting the right UK mortgage product can be a confusing task so it is a good idea to speak to an independent mortgage broker for impartial advice if required. An independent mortgage broker will have specialist software that can scan the entire UK mortgage market to help select the right product to suit an individual's personal financial circumstances. Remember ? the APR will not tell the whole story so pay attention to the fees that are charged when selecting your next mortgage.