NatWest heats up the UK mortgage rates war.

NatWest have entered the UK mortgage rates war by offering the 'new' lowest ever 5 year fix.

The lender has announced the launch of an historically low 5 year fixed rate at 2.95% for 60% LTV. This lowest ever rate is 0.04% lower than Santander and HSBC's lowest ever 5 year fix at 2.95%.

The UK mortgage rates war as to which high street lenders offers the cheapest rates continues to rumble on, the hope is that more lenders will enter the battle and release yet cheaper offers.

Critics advise that while the release of exceptionally low 5 year fixed rates is of benefit, they do come with a downside which is high deposit levels and high fees.

The NatWest 5 year fix maybe the lowest ever, however the fee charged is one of the highest.

An applicant must have a 40% deposit and then be able to afford to pay a mortgage arrangement fee of £2,495. Once the lenders fee is factored into the deal the overall cost of the mortgage may not be so competitive after all.

High fees greatly impact on the overall cost of a mortgage and can invalidate an exceptionally low headline rate.

NatWest's mortgage fee is around £1,000 higher than the fees charged by HSBC and Santander who both offer a 5 year fix at 2.99%.

The UK mortgage rates war for the lowest ever 5 year fix perfectly illustrates just how important it is to consider fees when working out the affordability of any offer.

Deal Direct can help you work out which is the cheapest mortgage overall. We will search the entire UK market to source the deal best suited to your circumstances. Our advisers will compare all fees, rates and charges to come up with the cheapest mortgage over all.

For the lowest UK mortgage rates call Deal Direct.

Our adviser will find you a cheap offer.