Mortgage perks aplenty as lenders vie for business
There are now thousands of mortgage deals offering one or more perks to borrowers, with the number of products offering cashback alone increasing by 598 products between May 2017 and today, said Moneyfacts.
And the number of incentives has risen year on year, according to the financial information provider.
Some lenders are now offering at least £1,000 cashback – including Barclays Mortgage, Cumberland Building Society, Nottingham Building Society, Principality Building Society, Post Office Money and Virgin Money – compared to this time last year.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “It is encouraging to see that lenders are not just looking to entice borrowers by offering competitive rates, but that they are also looking at the full mortgage package, leading to a rise in the number of products offering incentives. Incentives are an important part of any deal to consider as it could mean cash-strapped borrowers save significantly on upfront costs.”
Over the last year, the number of deals that offer a free valuation has risen by more than 400 while there are now also over 100 more products that offer free legal fees.
“One of the key groups of borrowers in the market that may pay particular attention to a deal’s incentives is first-time buyers,” said Springall, “as they could have used all their disposable cash for a mortgage deposit or removal costs. Therefore, a product that incorporates a generous package of incentives could be the better choice.
“It is worth keeping in mind not all of the products that include the most generous incentive packages will necessarily have lowest interest rates, so although these deals could offer upfront savings, in the long-term, the higher monthly repayments could far exceed any initial savings.”