Is this mortgage a good deal?

Q We are next-time buyers looking to purchase a fixed-rate mortgage with a view to staying in our next property long term. We have been offered a 10-year fix at 4.89% with Scarborough building society. We have been told we can transfer this mortgage to a new property if we move within the fixed term, for £150 fee.

Is this the good deal it sounds? We like to know our outgoings and consider that over the 10 years rates are unlikely to stay at well below that rate for any length of time. What would you advise?

JT

A Without knowing all the ins and outs of your mortgage, I can't say for certain that the Scarborough deal is the best for you but it looks reasonable in comparison with the offer from Nationwide building society which also charges 4.89% fixed for 10 years. However, the Nationwide's rate applies only if you want to borrow 90% (or less) of the property's value.

But on the face of it, the rate of 4.74% charged by Britannia building society on its 10-year fixed rate mortgage is a much better bet. However, the rate of 6.1%, which applies once the fixed rate has come to an end, seems a little steep.

To be able to say for sure which gives you the better deal, the fees each lender charges need to be taken into account as well as the size of loan you are after. If there's still time, it might be worth getting quotes from the other two lenders just to put your mind at rest.