Britannia Building Society has cut the cost of its fixed rate mortgage range, but is simultaneously reminding borrowers that rate is not everything, and that they should look at other factors when taking out a mortgage.

From today, Britannia’s two and three year fixed rate mortgages will be cut by up to 60 basis points, meaning that a two year fixed rate will start from 3.59 per cent.

The new rate cut means customers of its two year fixed rate mortgage will have monthly payments of £760.21, based on a £150,000, 60 per cent LTV (loan to value) mortgage over 25 years, with the £549 arrangement fee added to the cost of the loan.

In a competitive market, Britannia urges borrowers to be mindful of the full cost of a mortgage, and to look beyond the headline rate when choosing the right home loan for them.

“Although there are some great rates available in the market at the moment, it’s important that borrowers look at the overall package, not just the headline rate,” said Tim Franklin, managing director of member business at Britannia.

“Based on the rate alone, Britannia’s mortgages aren’t the lowest around. However, on a true cost basis, taking in to account the arrangement fee and valuation, they offer some of the best value in the market.”

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