Spotlight: Mortgages

Abbey has launched a market-leading, fee-free three-year fixed mortgage at 5.99 per cent for existing current account customers who have only a 10 per cent deposit. To qualify, you must have had an Abbey or Alliance & Leicester current account for at least six months. But if you are eligible and are looking for a new mortgage, and need to borrow up to 90 per cent, then Abbey's three-year fix is worth considering.

The most competitive mortgage deals are still only available to those with large deposits, in some instances as much as 40 per cent, but we are seeing an increase in the number of providers offering loans up to 90 per cent.

Abbey's three-year fix is only available to customers who are buying a property, not remortgaging. There is no arrangement fee and borrowers also receive £250 cashback and a free valuation.

If you don't bank with Abbey or A&L and are looking to borrow up to 90 per cent and fix your mortgage payments, Clydesdale Bank also has a three-year fix at 5.99 per cent, although there is a £599 arrangement fee.