The rise and rise of mortgage rates have made “booking ahead” more popular for those whose mortgages are due to be renewed this year and want to make sure they don’t fall foul of the ever increasing rates. Booking ahead works by letting borrowers secure a certain rate and then go elsewhere if they get a better offer, although some lenders are being accused of profiting from the offer.

First Direct, which stopped lending earlier this year, made a reappearance into the market last week with a 5.49% two year fix. For this privilege, however, there is a £499 booking fee to be paid at the time of application as well as a £999 arrangement fee which can be paid on completion.

David Hollingworth, of brokers L&C, said: “First Direct undercutting the market as it did earlier this year. Charging high non-refundable fees is a sneaky way to fund cheaper mortgage rates”.