When is a deal not a good deal?

When you decide to buy your first home, or move to a new property, you often find that you are faced with a huge range of deals offered by lenders, all with different offers and fees. So how do you know when a deal is worth having?

Barclays has released a new product, which offers to pay your stamp duty up to £2,500. The new product, the Homebuyer Cashback Mortgage, has no arrangement fee and its rate of interest is 2.69% for five years. For properties up to £150,000, the amount offered is £1,250 and for properties up to £500,000, the amount offered is £2,500.

According to mortgage broker, Ray Boulger, the deal with Barclays may not be good value for anyone who has a deposit which is more than 20%, as there may be other deals available which have a lower rate of interest. One of the reasons why buyers approach a mortgage adviser, is that they have studied on a CeMAP course, and know how to calculate the cost of a mortgage over its term, factoring in the various fees and charges which are applicable.

Boulger stated that lower interest rates are often available for those with a 20% deposit, and there may be better deals for those with more than 20% to put down. The new mortgage deal from Barclays isn’t available for Help to Buy or buy-to-let properties, but is available to those with shared equity or shared ownership schemes. Seeking professional advice will ensure that you find the best deal for you.



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