Spotlight On: Santander's 'Hat-trick' mortgage

The deal

Spanish-owned bank Santander is offering a three-year tracker mortgage at 3 per cent with a £333 fee. With the World Cup in mind, the bank has dubbed the deal a 'hat-trick'.

The good points

A 3 per cent interest rate over three years is certainly competitive. More attractive, however, is the low £333 "booking" fee, especially as borrowers can be charged £1,000 or more with other deals.

The bad points

You can get better rates. Yorkshire Building Society, for instance, has a two-year tracker at 2.39 per cent. Also Santander's deal is only available if you have a deposit of at least 25 per cent, which will rule out plenty of borrowers.

Conclusion

Santander is not the first to use the World Cup as a peg to launch a gimmicky mortgage. As with the other deals, borrowers should cut right through to the cost and work out which deal works best for them and not let football fever sway their view. if you need help, get advice from a mortgage broker. Find one at www.unbiased.co.uk