Look Closer at your Good Deal

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The Nationwide has grabbed the best-buy mortgage headlines for its two-year fixed-rate  loan with a rate of 1.34 per cent and presumably cited its status as a mutual (as it always does) for being able to beat the big banks. But, look a little closer and you will see that the deal comes with an “arrangement fee” of just short of £1,000.

Nationwide is not alone, but First Direct, Virgin and Clydesdale Bank, which are not far behind with their headline rate, charge nothing. If you are taking out a big mortgage the fee charged by Nationwide and others still makes their deals worthwhile, but it pays to do your sums and take the extra charge into account rather than just grabbing a headline-grabbing rate.

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