New research claims that mortgage arrangement fees charged by banks and building societies have fallen by around 25% during the past year.

The average fee charged to borrowers taking out a two-year fixed rate mortgage has dropped from £1,243 in 2008 to under £1000 now, according to financial website moneysupermarket.com.

This news comes hot on the heels of the Low Cost Housing Range introduced by the Halifax and the fall in the fees is seen as a further sign that the impact of the credit crunch is beginning to ease.