Sub 1.5% mortgages are launched, but which is actually the best mortgage offer?

Finding the best mortgage can be a challenge at the best of times, but with lowest rates ever charged with increasing fees the job gets even harder.

Last week saw the launch of HSBC's 2 year fixed rate deal at 1.49% with £1,999 fees, and now the West Bromwich BS has launched an even cheaper rate 2 year fix at 1.48% with fees of £2,494.  To be considered for either deal you are required to have a 40% deposit and cash to cover the high fees.

Lenders charging very high fees for headline grabbing mortgage rates is nothing new, but the fees seem to be getting higher. When considering any mortgage offer you have to think is the fee worth the rate? If you are looking for a small mortgage advance then a higher rate with a lower fee may prove more financially beneficial.

You need to consider all factors. Paying a higher fee for a lower rate may prove far less affordable overall if you are opting for a shorter term fixed rate deal. With a 2 year fixed rate mortgage you will need to remortgage after just 2 years incurring more fees, whereas with a 5 year fix you will not need to do this saving further fees.

The Chelsea BS for example has a 2 year fix at 1.84% and while you might think this works out more expensive that the HSBC and West Brom deals, it actually doesn't when you review the total to be re-paid overall. You need 5% less as a deposit, the fee is £875 and you get £500 cashback or free legal and valuations depending on whether you are remortgaging or purchasing a property.

This is just one example of where ultra low headlines rates do not represent the full picture.

When reviewing the affordability of any mortgage fees are a large factor, and a best buy rate with a high fee may actually not work out to be the best deal afterall.

When looking for the best mortgage for your circumstance you are advised to review more than just best buy mortgage deals, a thorough review of all lenders products could find you a far more affordable mortgage offer.

There are so many competitive deals on available market wide that it pays to search the market through an expert.

You may be familiar with the big high-street lenders but there are so many smaller lenders and building societies offering great products and mortgage exclusives. It pays to research each and every lenders range to work out who really is offering the best mortgage for your deposit level.

For an up to date through independent mortgage market review call Deal Direct on 0800 048 8828. Our advice is impartial and based on your mortgage needs. We work on your behalf and not that of any lender.

Call 0800 048 8828 for the best mortgages market-wide.