The best mortgage deals for medium sized deposits.
The best mortgage deals tend to be reserved for those with high deposit levels of 25% percent and above.
Low deposit buyers are generally offered the least competitive rates but they are helped with schemes such as new buy, shared equity schemes or are offered lender incentives such as help with stamp duty.
High and low deposit buyers are catered for, so what about those who fall in the middle bracket with a medium deposit of between 15% and 25%? What kind of deals are available from lenders?
One of the best mortgage deals on offer at a medium deposit level is from Barclays who have a 2 year fixed rate offered for a 20% deposit at a rate of 3.69% with a £999 fee. On an average £160,000 property, monthly payments would be around £653 per month.
Fee free or fee assisted deals are also on offer at medium deposit levels for home-owners who have equity but little spare cash.
Barclays offer a fee free version of their 2 year mortgage for 20% deposit at 3.99%, over an average mortgage this would mean monthly mortgage repayments of around £674. Over the course of the 2 year fixed period this deal would work out cheaper than the one offered at a lower rate and higher fee.
This perfectly illustrates that when working out mortgage affordability, it is essential to consider all factors such as headline rate, fees, incentives and early repayment charges.
For an up to date comparison of the best mortgage deals available at a medium deposit level contact Deal Direct today.
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