Spotlight On: Lloyd's TSB's fee-saver mortgage

The deal

Lloyds TSB has launched a fee-saver mortgage for first-time buyers, with the chance to save up to £760.

Good points

First-time buyers will not have to pay a mortgage product fee of £495, or a mortgage account fee of £265, if they take out a two-year fixed-rate mortgage with the bank.

Bad points

Interest charges start at 5.99 per cent if you have a Lloyds TSB current account. If not, you'll be charged 6.09 per cent.

Conclusion

Ignore the "freebie", look at the costs. A rate of 6.09 per cent over two years – to non-Lloyds customers – is far from cheap. If you have a 10 per cent deposit, for instance, you can get a 4.99 per cent fee-free deal through HSBC. However, in my view, all deals should be fee-free so you can easily compare costs.