Contact Us
Sally Botham Estates
27 Bank Road
Matlock
DE4 3NF
01629 760899
enquiries@sallybotham.co.uk
London
Tel: 020 7318 7087
Increased competition between lenders has seen the number of
fee-free fixed rate mortgages more than double over the past twelve months.
According to recent data from Moneyfacts, there were 556
fee-free deals just over a year ago, compared to 1,162 by the end of 2016.
Although the number of fee-free deals has increased, average
fixed rate fees have gone up by £30 from £954 to £984 over the past year. The
average two-year fixed rate, however, has fallen from 2.67% to 2.34% in the
last 12 months, which suggests some lenders are introducing lower rates but
with higher fees.
Fee-free mortgages usually have slightly higher rates than
those which do charge a fee, but they often still work out to be more
cost-effective overall once fees are factored in.
Calculations show that borrowers with a 25% deposit opting
for the lowest two-year fixed rate deal with a fee could be more than £1,000
worse off than if they’d gone for a deal with no fee.
It’s important that when comparing deals, borrowers always
look at the total cost, rather than just the headline rate of interest charged.
Sally Botham Estates
27 Bank Road
Matlock
DE4 3NF
01629 760899
enquiries@sallybotham.co.uk
Tel: 020 7318 7087
As market leaders for over 22 years, we are proud to be one of Derbyshire's most trusted estate agents. With our expert advice, honest and ethical communication, and a professional yet personal service, we are ready and excited to help you with all your property needs.
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SALLY BOTHAM ESTATES LIMITED. Registered in England. Company No: 04884262. Registered Office Address: St Helen's House, King Street, Derby, DE1 3EE.