Cheap 5-year fix, but watch the £1,399 fee

FirSt DireCt has l aunched a market-leading deal for homeowners who want to fix their mortgage rate for five years. the 2.64 pc deal has a £1,399 fee and requires borrowers to have at least a 35 pc deposit.

repayments on a typical £150,000 25-year loan work out at £684 a month. the total cost over five years is £42,439. Yorkshire Building Society also has a five-year fix at 2.64 pc, though with a slightly more expensive fee at £1,475, and it’s available only to borrowers with a 40 pc deposit.

repayments would also be £684, but total cost is slightly more at £42,515.

For many borrowers — particularly those with smaller mortgages — it may be worth opting for a deal that has a slightly higher rate but a cheaper fee.

With Norwich and Peterborough, borrowers can still lock into a competitive 2.74 pc rate for five years while only forking out for a £295 fee.

Monthly repayments work out at £691, but the smaller fee means the total cost over the five years is less, at £41,755.

the deal comes with free legal work and valuation costs f or people remortgaging, or £ 200 cashback f or buyers.

London & Country says those with a smaller 20 pc deposit can get a 2.99 pc five-year deal — £711 a month — with West Bromwich. it has a £1,094 fee.

the cheapest two-year fixed rate currently is 1.74 pc with Chelsea BS, but borrowers must have a 40 pc deposit and there is a large £1,675 fee. Monthly repayments are £617 and the total cost over two years is £16,483.