Looking beyond the headline rate

Britain's second largest building society is encouraging borrowers to look beyond the headline rate when it comes to choosing a fixed rate mortgage.

Britannia is cutting the rate of its two and three-year fixed rate mortgages by up to 60 basis points from Wednesday (15 April), but is also reminding borrowers they should look at the true cost of the loan when making their decision.

Tim Franklin, Managing Director of Member Business, said: "Although there are some great rates available in the market at the moment, it's important that borrowers look at the overall package, not just the headline rate.

"Based on the rate alone, Britannia's mortgages aren't the lowest around. However, on a true cost basis, taking in to account the arrangement fee and valuation, they offer some of the best value in the market."

Available from Wednesday 15 April, Britannia's new products offer initial rates from just 3.59%, fixed for two years. On a true cost basis, this means borrowers will pay just £760.21 each month

Anyone wanting more information about Britannia's mortgages should visit britannia.co.uk