Is your mortgage deal really the best?

Britannia Building Society is challenging borrowers to save thousands of pounds by analysing the true cost of their mortgage.

Its 'True Cost Challenge' urges borrowers not to be seduced by the headline rate but to also consider fees and other added costs.

Britannia is asking borrowers to look closely at the hidden costs of a mortgage - the administration fees, valuation charges, conveyancing costs and exit fees - and to consider if they are paying too much with other lenders, which they often are.

The latest advertising campaign from NatWest states it will give borrowers with Abbey, Halifax, Lloyds TSB and Woolwich £1,000 if it can't beat the rate the customer is currently being charged in comparison to its Two-year Discount Tracker.

But Britannia's Two-year Discount Tracker, based on a £110,000 repayment mortgage, beats the true costs of NatWest's product.

As well as saving money over the term of their mortgage, by joining Britannia, the borrower would be able to reap the benefits of the Britannia Member Reward scheme - which pays an annual bonus back to the member.

This means that by having a mortgage for 25 years, the borrower could earn more than £5,000 as a reward.

Neville Richardson, Britannia Chief Executive, said: "Rather than be seduced by headline rates, we would encourage borrowers to look closely at the deal they are committing to. We want to encourage anyone looking for a new mortgage to take the True Cost Mortgage Challenge.

"We have carried out extensive analysis of the mortgages offered by our competitors and when you look at the complete picture, not just the initial rate, then our mortgages are among the best around."