ADD UP THE FEES ON LOANS

ABOVE: Add up the fees before deciding on a loan

23rd September 2009

HOME owners could be forgiven for thinking mortgage lenders have loosened their purse strings with the launch of some low interest rate deals.

But experts advise you get out your calculator.

For a start the banks - Woolwich (1.98% tracker), HSBC (1.99% discount), First Direct (2.79% tracker) and Halifax (2.99% fixed) - insist you put down 40% to qualify. Then there are fees.

The Halifax charges a 2.5% fee, whereas First Direct and Woolwich charge £999.

On a £130,000 mortgage over two years that Halifax arrangement fee pushes up the overall cost of the loan.

Hannah-Mercedes Skenfield of website moneysupermarket. com said: "It would be great to see providers launching products that would benefit a greater proportion of the market, rather than chasing headlines."

Compare mortgages at dailystar.co.uk/money