What house? mortgage is for you?

What house mortgage should those of you seeking a loan to buy a new home opt for in the current economic climate?
What House? takes a look at some of the best mortgage deals currently available.

Fixed Rate Mortgages:

For those of you looking to buy a new home with a secure financial plan whereby the monthly mortgage repayments are fixed, look no further than First Direct’s 3.49% two-year fixed rate mortgage. The only downside is that borrowers require a deposit of at least 40%, and there is an arrangement fee of £1,298.
The best deal available to anyone with a 25% deposit is the 3.79% two year fixed rate currently being offered by Mansfield BS at an arrangement fee of £999.

Royal Bank of Scotland’s 4.39% fixed rate until 31 October 2012 available to people with a 25% cash deposit is available at an arrangement fee of just £499. 
Last but not least of the under 5% fixed rate deals is HSBC’s 4.95% fixed rate until 30 November 2014 which comes with an arrangement fee of £999. 

Tracker/Discount Mortgages:

The best of the tracker mortgages, which offer monthly payments that track the Bank of England’s base rate for a set period of time, is currently being offered by HSBC at just 1.99% for two years at an arrangement fee of £1,199. But borrowers will require a 40% deposit.
ING Direct is featured once more, this time with their 2.79% tracker rate until 31 December 2011, available to people with a 25% deposit, at an arrangement fee of £795.
First Direct are also offering a 2.79% tracker rate, but their deal is fixed for two years at a cheaper arrangement cost of £495.

10% loan-to-value mortgage

Anyone seeking a higher loan-to-value mortgage should take note of HSBC who have announced that they will boost lending to homebuyers with deposits of just 10% in a show of confidence in the residential property market.

Martijn van der Heijden, the head of mortgages at HSBC, said: “demand [for new homes] has been very strong… house prices seem to have bottomed and rates are very low.”

HSBC is offering a two-year discount at 3.89%, with a £1,119 fee, and a lifetime tracker at 4.59% and a five year fix at 6.49%, both with a £599 fee.

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