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Am I mad to want an unnecessary mortgage?

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After a decade of working and saving hard, we are thinking about buying a house.

Ages: 29 and 28
Salaries: £32k and £25k
Total savings: £260k spread across bonds, S&S ISAs etc.

It's likely that we would want a house for around £250 which means we could obviously buy outright.

But to my mind, that seems stupid. If I can borrow say £100k @ 2.99% over 5yrs (or 1.99% over 2) with Yorkshire BS, surely I should have a reasonable chance of beating that significantly with investments?

One final question - do you know of any simple way to incorporate all of the "associated" mortgage fees into the whole price (arrangement/booking/survey costs)? It drives me mad not getting a simple number that I can use to compare!

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