Good news and bad on the mortgage front

[DimPrawn]

http://www.dailymail.co.uk/news/arti...sts-3-000.html

Fixed rate mortgages have dropped below 5 per cent again as competition returns to the market.

But the cheaper two-year deals come with a catch - an arrangement fee of more than £3,000.

The Halifax has launched a two-year deal at 4.89 per cent while Cheltenham & Gloucester has also shaved its rate below 5 per cent.

I guess with HBOS this wonderful opportunity of paying over £3,000 in arrangement fees has been pulled?

[chris79]

These deals are just a con, it's the same as credit cards offering 5.x% for 12 months but with a 'balance transfer fee' of 4%. When calculated the overall interest rate runs out at a much higher figure like 7 or 8%. I'm sure they have to quote "the cost for comparison APR" which shows the true figure? I know Northern Rock do this.

[Torran]

Um thanks Chris