You're missing out on the best mortgage deals
We reveal the mortgage deals from smaller banks and regional building societies that are topping the best-buy tables.
We’re all familiar with the high profile banks – HSBC, Barclays, Santander, Lloyds TSB and Halifax. Chances are you’ll see at least one of them every time you walk along any high street.
Although it might be tempting to opt for a familiar brand when you’re looking for a new mortgage deal, doing so could mean you miss out on market-leading offers.
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Get a rate below 2%
If you’re interested in a short-term tracker deal and have a substantial deposit, several less well-known lenders offer deals below 2%.
At present, Chelsea Building Society offers a two-year tracker with an initial rate of 1.99% (1.49% above the Base Rate) for those with a 30% deposit. Beware, however, there is a product fee of £1,495.
If you have a larger deposit of 40%, you could opt for a two-year tracker from Skipton Building Society, with an initial rate of 1.98%. Once the two-year term has expired, you will pay a standard variable rate of 4.45% above the Base Rate – currently 4.95%.
Fix your payments until 2016
With the recent flurry of activity in the mortgage market, five-year fixed rate deals have become particularly competitive – especially through regional building societies.
With Chelsea Building Society, you could fix your mortgage at 3.29% until 2016. In order to qualify for this market-leading rate, you will need a deposit 30% and pay a pretty hefty fee of £1,495.
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As soon as the five-year term has expired, you’ll pay a subsequent variable rate of 5.79%.
10-year fixed deal
If you would prefer to fix your mortgage for longer, you could consider the 10-year option from Chelsea Building Society. At 3.99%, this deal is the cheapest-ever 10-year fix and is available to those with a 30% deposit.
Whether you’re an existing homeowner or a first-time buyer, knowing the mortgage market inside out could help you get the best deal. Take our test to see how your mortgage knowledge measures up.
Newcomer shakes up the market
For the first time since the credit crunch, borrowers can now secure a 100% mortgage in the form of three-year fixed deal from newcomer Aldermore bank.
In order to qualify for the Family Guarantee Mortgage, a family member will need to act as a guarantor on anything borrowed above the 75% LTV barrier..
Also note, the deal comes with a hefty 6.48% interest rate, is only available to those over the age of 25 and the maximum loan size is £250,000.
If you have a deposit of five or 10%, you could consider the range of products available from Mansfield Building Society.
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Those with a 10% deposit could secure a three-year discounted mortgage, which pays 1.64% below the lender’s standard variable rate – which gives it a current rate of 3.95%.
What about my savings?
If you’re keen to set aside some extra cash in the form of a savings account, it could also be wise to look beyond the big names in the high street.
Regional Building Society West Brom pays the most competitive easy access rate at 3.17% on its WeBsave Easy Access 3, which allows four penalty-free withdrawals a year. There is a 1.42% bonus for one year, at which point you might want to consider moving your money.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
Mortgages - YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE. FAILING TO ADHERE TO REPAYMENT TERMS MAY RESULT IN PENALTY CHARGES AND AFFECT YOUR CREDIT HISTORY. Rates may depend on your individual circumstances
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