Spotlight On: Saffron's 2.99% fixed rate mortgage

The deal

Saffron Building Society is offering a 2.99 per cent two-year fixed-rate cashback mortgage until the end of November.

Good points

As well as a low rate, there's also £500 cashback paid on completion. The deal is available to new and existing members of the building society.

Bad points

After two years the rate reverts to the society's standard variable rate, currently 5.39 per cent. You'll need a 25 per cent deposit to get the mortgage. It's only available through one of Saffron's 12 branches in East Anglia.

Conclusion

This is a good example of mutuality at work, with the society offering competitive deals only to local people. If you don't live in somewhere like Colchester or Frinton-on-Sea, then it is worth checking out your own local building society to see what it can offer. With local knowledge, a mutual may be more likely to offer a loan to you than a national bank which relies on computer credit scoring.