From This is Money:
Bank and building society standard variable rates have plunged to historically low levels.
New fixed, tracker and discount deals have recently been slashed as banks and building societies seek to compete with Northern Rock, which itself is desperate to lend to homeowners.
However, borrowers should look beyond the headline interest rate and add in all the fees before deciding whether to switch.
Start by checking what you are being charged. Lloyds TSB and Nationwide have the lowest SVRs at 2.5%.
Mortgage repayments on a typical £150,000 would be £673 a month – total £16,128 over the next two years if rates remain unchanged.
Bristol & West charges 2.99%; Halifax/Bank of Scotland 3.5%; HSBC 3.94%, and Abbey 4.24%.
Most building societies charge more with Chesham BS the highest at 6.45%. This puts monthly payments at £1,008 on a £150,000 loan; £24,192 over two years.
Weigh up the total cost of the deals. For example, First Direct’s tw…
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