AVOID THE LOWEST MORTGAGE DEALS
There are some staggeringly low mortgage rates out there — and many of them are very eye-catching.
For example, West Bromwich BS has a two-year fixed rate at 1.58 per cent. By comparison, rival Norwich & Peterborough BS has a similar length deal at 2.04 per cent.
It seems substantially more expensive, but in most scenarios this second higher rate is cheaper than the West Brom one.
And that’s because of fees: West Brom charges £2,499, while Norwich & Peterborough’s fee is £195.
Figures from brokers London & Country Mortgages show that, when borrowing £150,000, the West Bromwich monthly repayments would be £606, but over two years the mortgage would actually cost you £17,043 once you add in the fee.
By contrast, the Norwich & Peterborough monthly repayments are £639 — but the total cost over two years is £15,531 — saving you £1,512.
Read more: http://www.dailymail.co.uk/money/bills/article-2693414/ten-unlikely-money-savers.html#ixzz37dtwZxgZ
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