It makes sense to keep mortgage costs low.

With a mortgage being the largest single expense that most of us will ever make, it is sensible to keep your biggest monthly outgoing as low as you possibly can.

Many home-owners prefer peace and mind knowing that their monthly mortgage repayments are fixed and will not rise for an agreed period. A fixed mortgage allows for better planning as you know exactly what you will pay each month.

Presently 30% of all mortgages on offer are for a 2 year fix.

Rates are competitive with best buys starting as low as 2.64% and 2.99% for 60% loan to value, from lenders such as HSBC and the Cumberland Building Society respectively.

The HSBC deal comes with a £1,999 arrangement fee and the Cumberland BS deal has a £999.

When looking at mortgage offers it is important to factor in both the rate and fees.

Working out which is the most affordable deal is not as simple as requesting just headline rates. Deal Direct can help would-be buyers and those considering a remortgage, we will calculate the real cost of any offer to find the most affordable product available. 

However not all home-owners want a short mortgage term, as while the rates offered are low you are required to remortgage every couple of years, which will mean extra mortgage arrangement fees.

For those people a 5 year deal could offer better value. Currently two of the best short term mortgage deals on offer are from Yorkshire Bank who offer a rate of 3.79% for 65% loan to value with a £999 fee, and Cumberland BS who offer a rate of 3.84% for 60% loan to value with a £699 fee.

To work out which is the lowest cost mortgage, best suited to your circumstances contact Deal Direct.