With a relatively low interest rate of 5.79%, the Leeds deal reached the top of the best-buy tables this week, after First Direct raised the rate on its two-year fix by 0.5 percentage points to 5.99%.

However, brokers have urged borrowers to avoid the deal, as the 3% fee can add thousands of pounds to even small loans.

Aaron Strutt of Chase de Vere Mortgage Management said: “It is disappointing that the market-leading rate can be accompanied by a fee of as much as £7,500. Many of our clients are still shocked at paying fees of £1,000. The fee becomes even more expensive if borrowers choose to add it to the overall loan, as it then becomes subject to interest.”

He added: “Borrowers need to take fees into account but this may not be easy to do when looking at best-buy tables on internet comparison sites as the fees may not be immediately obvious.”

Figures from Defaqto, the financial data provider, this week showed that the average arrangement fee on a three-year tracker mortgage has soared by 121% in the past 18 months, from £447 to £991.