Niche mortgage deals were the focus of this weekend’s financial press, following the launch of the Leeds Building Society 0% mortgage. This deal offers a range of 3 and 5 year fixed rates where the payable rate is 0% for the first 3 or 6 months. Brokers in the Guardian and the Financial Times welcomed the new deal, suggesting that it could benefit First Time Buyers by giving them some breathing space after having used the bulk of their savings on a deposit. The Sunday Times also looked at other niche deals, but experts highlighted that there are cheaper traditional deals on the market, so it is important for borrowers to assess how useful these features are.
The Mail on Sunday reported that several lenders are now offering 10 year fixes at under 4%, including Woolwich and Santander. Longer term deals allow a break from remortgage costs and promise security at today’s rates, but they can be inflexible in terms of Early Repayment Charges and a limited overpayment facility, so homeowners need to consider any potential changes in circumstances before tying themselves in.
Elsewhere the Sunday Telegraph revealed that there are now over 100 more deals available to those with small deposits compared to the beginning of this year.