Are the best mortgage deals from newer entrants to the market?
During the last 2 years various new lenders have entered the mortgage market but are theirs the best mortgage deals on offer?
If based purely on the headline rate then the answer may be no theirs aren't the best mortgage deals. Various large well established high street lenders have released several 'lowest ever' rates in the last few months. However when all factors are considered from fees to rates to mortgage incentives, smaller newer market entrants do offer some value for money deals.
Lenders such as Virgin Money, Tesco Bank, Metro Bank and Aldermore are releasing competitive mortgage offers and while they are not historically low, they offered at lower deposit levels which makes them easier to achieve.
When searching the mortgage market for a deal it is best to consider not what is the lowest rate on offer, but what is the lowest rate that is achievable with your personal circumstances and finances.
While historically low rates maybe on offer this means nothing unless you have access to a minimum 40% deposit.
The best mortgage deal is therefore the one that is appropriate for your needs and not the one that has the cheapest rate. Remember lowest ever rates often come with highest ever fees.
For a review of all low rate offers, call Deal Direct.
