Exceptionally low mortgage rates can come with a catch.

The lowest ever mortgage rates are being advertised but home-owners are discovering they come with very high mortgage fees.

If your head has been turned by an exceptionally low headline mortgage rate you had better have a deposit of 40% or more. Many are finding out that not only are the necessary deposit requirements high if you are to be considered for a deal, but arrangement fees are high too.

Lenders fees have increased significantly over the past 3 years. It now costs far more to arrange a mortgage and for the lowest rates fees can reach as high as £2,500.

Working out whether a low mortgage rate is worth a high fee can be complex.

If you are looking for mortgage advice you are recommended to call Deal Direct and one of our advisers will help you work out which mortgage deal best suits your needs.

Looking at the recently advertised exceptionally low 5 year fixed rates reveals the problem many face when trying to find the best overall offer. Fees must be factored in to work out the total cost over the mortgage term, a high arrangement fee can make a low rate far less competitive.

NatWest, Santander and HSBC all released a 5 year fixed rate at varying rate and fee levels, comparing their offers reveals how difficult it is and how invaluable the role of a mortgage broker is.

Santander offered 2.99% for 60% LTV with a £1,495 fee, HSBC's offered the same mortgage rate and LTV with a £1,499 fee and NatWest offered a rate of 2.95% with a £2,495 fee.

Is it worth paying a high fee for a lower mortgage rate? Contact Deal Direct and we will advise which is actually the cheapest offer. We will search the whole UK mortgage market for the cheapest rate that matches your circumstances.

Call one of our advisers for impartial advice

and a free quote.