LONDON (Reuters) — Mortgage lenders are hiking their application fees on fixed-rate deals, as homeowners flee for the security of set repayments.The average application fee has increased 18.5 percent since the Bank of England first raised interest rates last August, according to independent financial comparison web-site MoneyExpert.com.

At the same time, the number of products that come with a fee of more than [POUNDSTERLING]750 has risen sevenfold — to 93 from 13.

There are now just 251 loans with fees of less than [POUNDSTERLING]500, more than a quarter less than six months ago, it said.

The Monetary Policy Committee has pushed through three quarter-point increases in that time — adding around 72 pounds per month to the cost of a typical 150,000 pound standard variable rate loan.

And although it left rates on hold at 5.25 percent yesterday, analysts expect them to rise further.

Sean Gardner, chief executive of MoneyExpert.com, said: "Homeowners are desperate to fix their mortgage rates to avoid incurring further costs caused by rising interest rates.

"It's the sensible option, as further rises aren't out of the question.

"However, banks aren't stupid and fees should be taken into consideration if you're looking to switch.

"These can be hefty and may mean the difference between staying put and moving on."

However, a second study by online mortgage business mform.co.uk shows that intense competition in the mortgage market is keeping a lid on fixed and discounted mortgage rates, despite the cost of borrowing increasing.

Rates on these types of loans have risen by just 0.135 percent, on average, in the wake of each 0.25 percent increase in the base rate.

Eamonn Rice, chief executive of mform.co.uk, said: "There's been panic about the best mortgage deals disappearing, but our analysis shows there are still good value deals to be had.

"Fixed rates and discounted rates are rising, but not as sharply as rates in other parts of the market."

But he also urged borrowers to look beyond interest rates at the true cost of a mortgage before switching.

Someone borrowing [POUNDSTERLING]150,000 with Abbey's 5.29 percent two-year fixed rate would pay [POUNDSTERLING]902.41 per month, but with Stroud & Swindon's 5.55 percent loan they would pay [POUNDSTERLING]925.62.

But, because Abbey charges a [POUNDSTERLING]799 fee, the true cost of the seemingly cheaper deal would be [POUNDSTERLING]22,456.84 over two years — [POUNDSTERLING]241.96 pounds more than with Stroud & Swindon.