The best new mortgages

HSBC has captured the headlines by launching Britain's lowest fixed-rate mortgage, allowing homeowners to borrow at 2.99% for five years. It's an excellent headline rate that easily beats the next best rate in the market, which is 3.69%.

However, don't get too excited. It's only available to buyers with 40% deposits or at least that much equity (the estimated sales value less any mortgage) in their house. That will put it out of reach of most first-time buyers, meaning it will do little to stimulate the lifeless housing market.

At £1,499, the arrangement fee is also a lot steeper than most rivals are offering. And even if you can afford the fee

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and have the necessary deposit, you may still not get the mortgage. Several mortgage brokers have reported that "perfectly credit-worthy clients" have been rejected by HSBC.

If you can't meet HSBC's tough criteria, Nottingham Building Society may be the place to go. It offers a five-year fixed rate mortgage at 3.69%, with a £1,499 fee. The rate is not as competitive as HSBC's, but you only need a deposit of 25% to qualify.

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