The best mortgages maybe actually be the deals with the lowest fees.

With a dramatic increase in fees charged by lenders, the best mortgages maybe now be the ones which offer the lowest fees. First-time buyers and lower income home-owners are already feeling the pressure of rising mortgage arrangement costs. Moneyfacts spokeswoman Sylvia Waycot said: "In the excitement of buying a house, it is easy to ignore arrangement fees but this could be a costly mistake, especially if the fee is added to the mortgage loan.”

Average mortgage fees charged by lenders have risen by as much as £600 over the last year and buyers are being warned to pay careful attention to fees when arranging their mortgage. Buyers are being advised to factor in mortgage fees when comparing the best mortgages on offer as it is not just the rates that need to be considered.

Andrew Hagger from Moneynet.co.uk advises: “It's important to consider both the interest rate and the associated fees as lenders use a combination of both when pricing their products. Looking at just the fee or the rate in isolation is dangerous and could lead to you making the wrong choice of mortgage.”

Some of the best mortgages in terms of fees are, the Norwich & Peterborough Building Society 2 year fixed rate deal to 75 per cent LTV, which has a product fee of £295 with the option of either adding it to the advance or paying separately. The building society provides a free valuation alongside free legal fees or £200 cashback. The HSBC has a 2 year fixed rate mortgage to 90 per cent LTV with no application fee.