Cash point

Good news for homeowners as two of our big lenders have slashed the cost of borrowing.

Santander has launched a range of two and five-year fixed-rate mortgages for those looking to remortgage, all with no fees.

Meanwhile, First Direct has cut the fees across its entire mortgage range from a hefty £1,450 to a more reasonable £725, and is offering selected products fee-free. If you are looking to fix for two years, Santander offers 1.69% for those with 15% deposit, while First Direct is just a smidge more at 1.74% – both deals are fee-free and Santander also offers £250 cashback.

For homeowners with large loans – over £400,000 – Coventry Building Society offers 1.49% with a £999 fee on 15% deposits, which would work out cheaper over the term.

For fee-free five-year fixes, Santander is charging 1.94% and First Direct 1.99% on 25% deposits.

HSBC offers 1.74% for those with 25% deposit, with a £999 fee, which would be a cheaper option over the five years for those borrowing more than £150,000.

Andrew Hagger from Moneycomms.co.uk says: “There are some ultra-low cost deals to be had. But get an independent mortgage adviser to crunch the numbers to get it right.”