The online bank owned by HSBC yesterday launched a five-year, fixed-rate mortgage at 2.99 per cent.
Fixing at 2.99 for the next five years looks attractive, even if mortgage rates stay low for the next five years.
The booking fee – it's a whopping £1,999! This from the lender that pioneered the £99 fee last year is quite shocking. Also, the deal is only available if you have at least a 35 per cent deposit, which will rule out new borrowers and many movers or remortgagers.
This is yet another example of a great headline rate maybe hiding an expensive deal. You won't know whether it's a good deal until you've done your sums. Lenders should scrap confusing fees and have a rate that's easy to compare.