Choosing a Mortgage With Cheap Interest

Most financial advisors worth their salt will encourage a person to shop around before making a decision about what mortgage is best suited to their needs. Choosing a mortgage with cheap interest is easier said than done with so many financial institutions offering tempting deals. However, what sort of mortgage you sign up for and how much the interest rate is on that mortgage is important and can affect both your short-term and long-term finances.

The mortgage you choose will depend on a number of factors, including how much deposit you have to put down and how long you want the mortgage to last. There are no longer any financial institutions who offer a 100% mortgage although some may offer a 95% mortgage. However, the interest rate usually reflects this. When looking for a mortgage with cheap interest you will need to consider what sort of interest deal you want such as a variable rate or fixed rate.

First Direct bank has one of the most competitive deals on the market with its 2 year fixed rate interest of 2.09% APR moving to 3.69% APR after 2 years. This deal is subject to status and requires a 35% deposit down from the borrower. National Westminster Bank also offers a mortgage with cheap interest with a fixed rate of 2.19% moving to 4.0% after two years. This deal requires a 50% deposit down from the borrower.

When looking around for a mortgage with cheap interest it is important to ask for information regarding the whole deal. Some banks offer a low fixed rate of interest but have several high fees involved.

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