Loughborough (Admin/Marketing Hub) - 01509 861222
Ashby-de-la-Zouch - 01530 413126
Market Bosworth - 01455 291471
Melton Mowbray - 01664 896332
Increased competition between lenders has seen the number of
fee-free fixed rate mortgages more than double over the past twelve months.
According to recent data from Moneyfacts, there were 556
fee-free deals just over a year ago, compared to 1,162 by the end of 2016.
Although the number of fee-free deals has increased, average
fixed rate fees have gone up by £30 from £954 to £984 over the past year. The
average two-year fixed rate, however, has fallen from 2.67% to 2.34% in the
last 12 months, which suggests some lenders are introducing lower rates but
with higher fees.
Fee-free mortgages usually have slightly higher rates than
those which do charge a fee, but they often still work out to be more
cost-effective overall once fees are factored in.
Calculations show that borrowers with a 25% deposit opting
for the lowest two-year fixed rate deal with a fee could be more than £1,000
worse off than if they’d gone for a deal with no fee.
It’s important that when comparing deals, borrowers always
look at the total cost, rather than just the headline rate of interest charged.
About us
Alexanders Property Services Ltd trading as Alexanders. Tel: 01509861222
Registered in England: 08476446. Registered Office c/o The Point, Granite Way, Mountsorrel, Loughborough, Leicestershire, LE12 7TZ.
VAT Number: 171925008
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