by Mark Johnston
How do you decide between all the different mortgage deals out in the market at the moment to ensure that you are getting the best deal and the right deal for you?
The standard variable rate mortgage is a cheap option and benefits from few restrictions and penalties. On the other hand, some trackers are also quite modest in price and their longer term often present as better value for money in the longer term.
Picking a mortgage deal based on how cheap it is may not be the best marker of how useful the rate is for you. What you should also keep in mind is the benefit that each mortgage rate will give you.
Short Term Tracker and Lifetime Trackers were reviewed yesterday and the best rates were detailed but there are quit a few other deals still to review.
Long Term Fixed rates deals can sometimes be better deals and give you more consistency in your monthly payments. Short term fixed rates can give you fantastic introductory rates but after your introductory term is over, you may have a very hard decision to make on what your next mortgage deal will be. Yorkshire Building Society, as we noted in our last publication, have been making a concerted effort to become competitive in the mortgage market. With interest rates at such a historic low, now is a good time to lock into a five year or even a ten year fixed rate that gives you a great rate of interest.
ING Direct has offered a 4.49 per cent rate for five years, £0 in fees but you have to have a 60 per cent loan to value. For a fee of £500 you can take advantage of Yorkshire Building Societies 4.39 per cent mortgage deal for five years at a LTV rate of 75 per cent.
Short Term Fixed Rates may be good for a small percentage of the buying population and not really suitable for the majority of main stream buyers. Remember that mortgages are a long term commitment and the rates and deals on offer are often short term and are used as and incentive to lure customers in. Once the term ends, rates can often rise quite sharply and can cause significant discomfort on your monthly budget.
Short term fixed rates are good in the short term but be mindful of the length of your mortgage.
ING Direct is offering a two year 3.49 per cent deal for a LTV rate of 60 per cent and £0 in fees. The Woolich are offering a 3.79 per cent deals for two years for a Loan to Value rate of 70 per cent, there are about £300 in arrangement fees to consider but this does appear to be a quite attractive deal.
Whatever your circumstances are, choosing the best mortgage rate for you is vital to ensure you pay off your loan in the best possible timescales and at the best possible interest rate. Do the research and crunch the number to find the best rate to suit your circumstances.
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