Tesco's new 2 year fixed mortgage – is it really a good deal?
After a review it seems Tesco's 2 year fixed rate mortgage at 1.74% maybe not be as great a deal as it first appears.
While is rate is market leading and matches Chelsea Building Society's 2 year fixed rate mortgage at 1.74%, it does come with a significant downside which is its fee.
Tesco charges combined fees of £1495, this is divided into a £1,300 product fee and a non refundable £195 booking fee.
As the second of its two fees is non refundable you will be required to pay Tesco £195 whether your application is accepted or not.
Tesco's new 2 year fix is a direct-only deal, and therefore you will not receive advice as to how your application is likely to be viewed and whether acceptance is likely. You will need to apply and keep your fingers crossed that you do not end up paying out £195 for nothing.
The question is why take the risk when other lenders such as the Chelsea BS are offering similar deals with no up front costs?
If you would like an affordable mortgage you are recommended to seek professional advice before you apply. Not only are refused applications a waste of your time and in the case of Tesco's 2 year fixed rate mortgage a potential waste of money, they can also negatively impact your credit rating.
If you would like to review the entire market to find the deal at the right rate you will be approved for, contact an adviser at Deal Direct.
To compare the best mortgage offers call 0800 048 8828.
