Cheap money aids mortgage deals

NatWest launches its first ever 2.95 per cent five year fixed rate mortgage today, after HSBC and Santander offered similar deals. But the offer is only for mortgages with loan to value ratios of 60 per cent or below, and comes with a £2,495 arrangement fee. Cheap money is finding its way into the mortgage market, as banks battle and offer the lowest fixed rates, helped by the government’s funding for lending scheme, said independent mortgage advisory firm John Charcol.