The Daily Telegraph newspaper examined a number of good new mortgage deals on the market this week, along with verdicts from financial experts Moneyfacts and Moneynet.
Here are two of the best mortgages featured:
1) Melton Mowbray Building Society is offering a variable rate mortgage deal with a two-year discounted rate of just 4.95 per cent. This represents a 0.04 per cent discount on normal rates, but is available to first-time buyers, the Telegraph reported. With 95 per cent loan-to-value (LTV) and a ££598 fee, mortgage-seekers can also borrow under an offset option.
The verdict from Moneyfacts was positive, with a spokesman telling the paper that “this is the only two-year discounted variable rate in the market at 95pc LTV.”
“With a combination of a low rate and a reasonable fee, first-time buyers will find this deal very attractive and the offset option will allow borrowers to reduce the outstanding balance further.”
2) The Nationwide Building Society recently cut the interest rate on its five-year fixed-rate mortgage to 4.39 per cent – a significant 0.1 per cent cut. The mortgage has 85 per cent LTV and for first-time buyers able to afford the deposit is an especially good deal due to its low fixed-rate.
Although it is not the cheapest five-year fixed-rate deal on the market, being pipped to the post by the Yorkshire Building Society, with its nigh-on unbeatable 4.29 per cent loan, plus a £495 arrangement fee, it still gathered plaudits from Moneynet’s Andrew Hagger.
He told The Telegraph: “The Nationwide mortgage is an excellent rate for those with a small deposit. It’s good news for customers that the bigger lenders in the mortgage market are now competing for higher loan-to-value business – a big change from this time last year, when all the focus was on deposits of 25pc and more.”