Discounted mortgage deal fees to be offered by lenders

Fees for mortgage deals are being discounted by lenders, meaning cheaper loans for borrowers in 2012.

Leeds Building Society has reduced its completion and valuation fees, and is offering a 3 year fixed rate mortgage for those with a 25 per cent deposit, at 3.04 per cent with a £199 booking fee.

HSBC has cut fees on its tracker mortgages which will save home buyers almost £1,000.

Mortgage lenders Halifax and Clydesdale and Yorkshire banks - both owned by the National Australia Bank, are offering special fee-free mortgage deals. Clydesdale and Yorkshire are waiving fees for customers taking new mortgages out before 25 February and the Halifax has launched a new fee-free, 2 year fixed rate mortgage for first-time buyer at 5.99 per cent. It is on a loan-to-value of 85 per cent to 90 percent with no fees and £500 cashback to cover moving costs.

Stephen Noakes, mortgages director at Halifax, says: "The total numbers of first-time buyers is currently at a low level across the UK, and it is clear that first-time buyers need more help to achieve their home-buying aspirations.

"It is therefore very important that, as an industry, we continue to offer flexible, competitive products. Our no fee, cashback product for first-time buyers will provide another option for those wanting to get onto the housing ladder."

The Chelsea Building Society are offering first-time buyer mortgage deals with a 10 per cent deposit, a 2 year fixed rate mortgage of 4.54 per cent with a £1,495 fee.