Fee free mortgages for small deposits.

More fee free mortgages for small deposits need to be made available by UK mortgage lenders, to help first time buyers climb on the property ladder.

Mortgage fees are an example of unexpected costs that can throw your carefully made calculations out, as you watch a proportion of the deposit you thought you had become swallowed up by costs.

There are many other things to save for in addition to a deposit such as legal work, property valuation and stamp duty. A lenders mortgage arrangement fee can be the final straw if you are cash strapped.

It is important to beware adding any such additional costs to your mortgage as will you pay interest on the sum added for the entire term of the loan.

Arrangement fees can be eye-wateringly high, varying anywhere from £400 to £2,000 and some buyers finances just cannot stretch that far.

For those in this position Clydesdale and Yorkshire Banks have two new fee free products for first time buyers. For those with a 5% deposit a 3 year fixed rate of 5.99% is offered fee free or for a 10% deposit a rate of 4.99% is offered.

Fee free mortgages can have a downside though as the rates are often slightly higher, however this does not mean that the deal offered will work out more expensive.

When looking at lenders mortgages, it is important to factor in headline rates and all additional costs to work out which is most affordable.

Deal Direct understand that inexperienced buyers searching for a competitive offer can end up stressed and very confused. We advise you to contact one of our skilled brokers who will work through all of the most competitive mortgages on offer to work out which is the best deal for you.

Contact Deal Direct today for an up to date low deposit, fee free mortgage comparison