HSBC offer a 2 year fix at 0.99% but watch out for the high fee.

This autumn there is a UK mortgage rate war going as lenders attempt to attract borrowers with ever more competitive deals.

The latest headline grabbing deal is one from HSBC which is offered at under 1%, the mortgage is a 2 year deal for up to 60% LTV at just 0.99%.

This new mortgage offer sounds too good to pass up, that is until you consider the fee which is set high at £1,999.

Is it very important to factor in the costs and fees associated with a mortgage, failure to do this could mean that you end up accepting a less competitive product overall.

While HSBC's rate is without doubt highly competitive, its fee is less so. When compared against other mortgages in the wider market this deal might not be as great as it first appears.

For instance N&P are offering a 2 year deal at 1.89% for 65% LTV, at first glance this seems less competitive because the rate offered is higher. However when you take into consideration the fee on this deal is charged at just £195, N&P's mortgage offer becomes much more competitive.

Working out which deal would be most affordable and competitive overall is not that easy when comparing mortgage products with differing criteria, rates and fees. Therefore the best advice is to seek help in finding the most competitive mortgage for your available deposit.

Remember don't be seduced by a 'lowest ever rate' and wind up with a less competitive deal because of having to pay a high fee. By making a poor mortgage choice you could end up paying far more for your home than you need to.

Seek professional help to work out the overall affordability of a mortgage.

For independent advice and a low cost mortgage,

call Deal Direct on 0800 048 8828.