Mortgage deals are not what they seem, says

Date:Thursday 17th September 2009
Author: Max Freedman

The headline mortgage deals currently available look great, but things are not what they seem, according to

Hannah-Mercedes Skenfield, mortgage spokesperson for the comparison site, noted that to many people it looks as though lenders are starting to offer better deals.

However, she commented that the low interest rate offers such as 2.99 per cent from Halifax and 1.98 per cent from Woolwich are only actually available to those people who can afford a 60 per cent or more loan-to-value mortgage.

Ms Skenfield pointed out that there can also be hidden fees such as the 2.5 arrangement fee for the Halifax product.

She added: "Even those that do have the necessary funds would be well advised to get out the calculator and see whether or not the deal works for them."

This week, at the same time as bringing out its 2.99 per cent interest one-year tracker mortgage, Woolwich also reduced its two-year fixed-term interest down to a possible 3.99 per cent.