With more than 3,500 mortgage deals flooding the market right now and rock-bottom interest rates, it can be hard to work out what will be the best option for you. As ever, the experts at Keywest are on hand to offer the best mortgage advice around.
Have you considered the benefits of a fee-free mortgage? The time could be right to look at the possibility, as new research from Moneyfacts reveals that the number of these deals has rocketed, increasing by 738 over the last two years.
These fee-free mortgages could be the perfect way for you to keep a rein on upfront costs. This can be particularly important when you are facing other costs associated with buying property in Leicester, such as valuation fees, moving expenses and legal fees.
This kind of mortgage can also prevent you having to add fees to your mortgage balance and paying interest on it for the duration of your mortgage.
The Moneyfacts’ research shows that there were just 394 fee-free mortgages available five years ago. This rose to 544 two years ago and to 1,086 a year ago.
Figures from six months ago reveal 1,226 of these products on the market, and this has risen to 1,282, according to the data that has just been released.
The fee-free market has become a new battleground for competition between providers, leading to greater choice if you decide to take advantage of the options on offer. You could benefit as lenders attempt to compete in ways other than with traditional headline rates.
According to Moneyfacts, the fees attached to the average mortgage have risen by £53 in a year to reach £975, meaning that fee-free products could be worth serious consideration rather than focussing on the lowest rates, which may have hefty fees attached.
As an example of the potential benefits on offer, a 25-year repayment mortgage for a £200,000 property with the lowest possible mortgage rate at a loan-to-value ratio of 75 per cent would lead to the true cost reaching £8,489.24 by the end of the first year.
In comparison, taking out one of the free alternatives with the lowest rates available would lead to a cost of £7,403.64 over the same period – a saving of £1,085.60.
Fee-free mortgages may also be worth consideration if you are planning to switch deals when a fixed rate ends. This can prevent changes becoming costly affairs – something that can particularly affect borrowers who are looking at mortgages over shorter terms.
As well as helping you to find your dream property to buy in Leicester, we can also put you in touch with one of our expert team of independent mortgage advisors to ensure that you get the right advice to choose the perfect loan for you. Get in touch with Keywest today, call 01162544555.
