We examine at the latest mortgage deals on the markets and see if they come up
to scratch.

Bank Rate may have been kept on hold at 0.5pc for the best part of three years
but mortgage
rates have been rising amid fears of a second banking crisis.

Ray Boulger, senior technical manager at John Charcol, said that the cost of
tracker mortgages and short-term fixed rates had continued to rise over the
last month as a result of the lack of trust in the eurozone banking sector

He said: “This results in the marginal cost of the new element of
lenders’ funding being very high.”

To help those looking for a mortgage we look at the deals getting attention.

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1. First (OTC BB: FSTC.OB – news) -time buyers
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Newcastle Building Society has launched a two-year fixed-rate at 5.95pc up to
95pc loan-to-value (LTV (Other OTC: LTVCQ.PK – news) ) with a £995 fee. It also offers a version at 6.25pc
with no fee and benefiting from a free valuation and a £300 cashback on
purchases.

Verdict

Typically those who are looking to get a foot on the property ladder with a
deposit of less than 10pc would struggle to get a deal, let alone a
competitive rate so this offering is worth a look.

David Hollingworth, spokesman from London & Country Mortgages, said: “It’s
another sign of the gradually improving market for first time buyers.
However, the rate is clearly higher than could be achieved with a bigger
deposit getting a bigger deposit would help open up more options and
better rates.”

However stumping up more money may not be an option for some and while the
£995 fee can be an unwelcome expense for those on a tight budget, before you
opt for the higher rate of 6.25pc to avoid the fee, carefully do your maths.

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2. For remortgaging
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For borrowers looking to remortgage, HSBC (LSE: HSBA.L – news) offers a lifetime tracker at 1.99pc
above Base for life, up to 65pc LTV. This mortgage does not charge an
arrangement fee and offers free valuation and free legal work and does not
charge for early repayments.

Verdict

This competitive deal is at the top of the mortgage best buy tables and does
not charge for early repayments.

The HSBC lifetime tracker offers an excellent rate pegged to Bank Rate so the
rate can’t be massaged by the lender in the same way as a standard variable
rate. It therefore gives good ongoing value without incurring fees and
carries no early repayment charges.

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3. For a short-term fixed-rate deal
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If you prefer the security of a fixed-rate mortgage and have a deposit of more
than 15pc, Chelsea Building Society has launched a two-year deal at 3.69pc
with an arrangement fee of £395.

Verdict

While this rate is good, it not the most competitive which comes from Hanley
Economic Building Society and charges 3.34pc and a fee of £495.

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4. Five-year fixed-rate deal
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For those who want to fix for longer, Hanley Economic Building Society is
offering a five-year deal for 4.40pc to 85pc LTV to new borrowers. This deal
does not charge an arrangement fee and comes with free valuation and legal
work for remortgages or £250 cashback for house purchases.

Verdict

If you prefer the stability of knowing what your outgoings will be for the
next five years, regardless of how the Bank Rate behaves, you could do a lot
worse than this mortgage from the Hanley.

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5. Tracker mortgage
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Borrowers may want to check out the First Direct tracker deal at 1.49pc above
Bank Rate for two years on mortgages up to 65pc LTV.

Verdict

With a £1,499 fee, no early repayment charges at any time and free legal work
for remortgages, this is not best tracker deal on offer. The HSBC offer
above offers a lifetime tracker at 1.99pc above Base on loans of the same
size. It too comes with a free valuation and free legal work for
remortgages. It also has no early repayment charges at any time.

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