By Charlotte Beugge

Homebuyers may be able to get historically-low mortgage rates - but at a cost of rising arrangement fees.

Research from analysts Moneyfacts has found that over the last 12 months the typical mortgage arrangement fee has risen from £889 a year ago to £1,498 today, an increase of 68.5%.

And the biggest rises have not been on high loan-to-value (LTV) mortgages - on a typical 60% LTV loan, the arrangement fee is up by 42% in a year, while on 90% to 95% LTV deals the typical fee is up by 11%.

And the number of fee-free mortgage deals is up from 283 a year ago to 343 now, although Sylvia Waycot, spokesman for Moneyfacts, says: "Very little is for free and no arrangement fee could mean a higher overall loan rate.

"The only way to compare properly is to ask your adviser for a 'true cost' projection which takes into account all payments over the life of the mortgage."

However, the new ten-year fixed-rate deal from Norwich & Peterborough Building Society does combine a low interest rate and a small arrangement fee. The rate is 3.99%, the lowest-ever ten-year fixed deal that the society has offered.

It is on a maximum 75% LTV and the fee is £295. Borrowers get a free valuation and free legal fees for remortgages or £200 cashback for purchasers.

N&P's product manager Richard Barker said that current swap rates have allowed the society, which is now part of the Yorkshire Building Society, to offer the deal.

Chelsea Building Society, which is also part of the Yorkshire Building Society, has a seven-year fixed-rate deal at 3.64% with a £395 fee on a maximum 70% LTV.