Spotlight on: Leeds' 5-year fixed mortgage

The deal

Leeds Building Society has launched a five-year fixed-rate mortgage charging 3.95 per cent.

Good points

Unlike many other fixed deals, borrowers are allowed to make overpayments which can reduce the cost of borrowing. In fact 10 per cent capital repayments are allowed each year without penalty.

Bad points

You'll need at least a 20 per cent deposit to get the 3.95 per cent rate. you'll be charged 5.99 per cent if you can put down 5 per cent of the value of the property or 4.49 per cent if you have 15 per cent to put down.

Conclusion

Despite soaring standard variable rates there are still new fixed and tracker deals worth looking at for those that qualify.