Remortgages That Look Too Good To Be True May Just Be That
Lenders are looking for borrowers and the lending market is competitive. The Funding for Lending Scheme that began in the last half of 2012 is now starting to have an impact for borrowers. Interest rates are dropping below the record 3% and in some offers the interest rate has dipped below 2%. These unbelievably low interest rates are reserved in most cases for those with the best credit histories and largest deposits or equity levels. It can seem like the cookie jar is being held at arm’s length from borrowers but that may be a good thing.
Borrowers should start taking their eye off of the deal that seems to be the best cookie in the lending jar and take a look at the deal overall. While a remortgage interest rate may be low the fees associated with it can make the deal less than perfect for a homeowner. Not all deals are created equally and they will not benefit homeowners the same. It is important that each homeowner look at their individual needs, consider the overall cost of the remortgage and then make a sound decision.
There may be a record low remortgage deal being offered from a lender but the deal with the slightly higher interest rate and no fee or lower fee could actually be the money saver for the homeowner. By taking in the overall cost including any fees associated with the remortgage the homeowner can see the actual cost of the deal. Looking beyond the cookie being dangled by the lender to get attention could result in finding the best deal in the batch.