As recently reported by the BBC, a number of banks and building societies are currently offering record low rates in a battle to win new mortgage customers during this quiet period on the housing market. Mortgage Broker, Aaron Strutt from Trinity Financial commented: "We are seeing newer lenders competing to top the best buy tables. The banks and building societies are battling to attract new borrowers and they are tempting customers in with their cheapest ever mortgages."
For those looking to remortgage, move home, buy their first home or invest in buy to let, more competition and low rates on the market is a positive thing. However, it is important that you don't assume the mortgage with the lowest rate is the right one for you. Some of the mortgage deals with the lowest rates of interest may also:
- Have large fees - some over £1000
- Require large deposit - some as high as 40%
- Not be very flexible
- Be a variable rate which could change in the near future
Mortgages with very low rates may be initially tempting but aren't necessarily suitable for you. Different deals need to be carefully compared, taking into account various factors including fees, deposit required, type of rate and flexibility it offers. The Mortgage Hut not only have access to thousands of deals but can help find the most suitable one for your financial circumstances. One of our qualified mortgage advisers will help you compare and contrast mortgage deals, giving you a full picture of the costs with no nasty surprises in the future.
Why not get in touch to find out how The Mortgage Hut could help you?
You can read the full BBC article here:
BBC News: 21st April 2017: Record Low Rate Signals Mortgage Battle