Spotlight On: Abbey for Intermediaries' 2 year fixed mortgage

The deal

Abbey for Intermediaries – which only sells its loans through mortgage brokers and advisers – is offering a 2 year fixed rate deal at 3.35 per cent.

The good points

There's no arrangement fee. The average 2 year fix has a fee of £928, according to Defaqto, while the average interest rate charged is 3.51 per cent.

The bad points

You can only get the deal if you arrange it through brokers. You'll need a 30 per cent deposit to qualify. While the offer is the cheapest fee-free 2 year fixed mortgage at the moment, Northern Rock's fee is just £99 for a 3.34 per cent loan. Meanwhile Woolwich charges 2.69 per cent but has a fee of £999, and is only offered to Barclays customers.

Conclusion

A fee-free mortgage means the interest rate you see is what you get. All mortgages should be as transparent about their charges. However that doesn't make Abbey's the best deal. You'll still need to do your sums and add up the total interest charged over the period to the fees to find out which will work best for you.