The number of UK mortgage deals available which offer a free gift has increased during the last five years.
Five years earlier, the number of incentives stood at 1,678, which has increased to 2,785 in 2016. Although the majority of incentives are free valuations, legal fees or cash back, new deals include gift cards, iPads and Smart TVs.
The Halifax recently announced that it was offering a gift card worth £500 to spend at Currys PC World, with mortgage deals completed between 20th June and 14th August 2016. Other financial services companies and utility companies are also offering incentives.
However, the deals on offer have been slightly better in previous years, with the West Bromwich Building Society offering a Rover 25 car in 2004. Among other deals at that time were plasma TVs, worth £3,299.
Although consumers may be lured by the deals on offer, it can make it much harder to select a mortgage which offers the best value financially, over the longer term. For instance, the cheapest two year fixed rate deal with the Halifax is 1.64%, while the cheapest deal available with HSBC is 0.99%. All deals have varying fees attached, which can make a huge difference to the overall cost of the deal.
Mortgage advisers are required to take a CeMAP training course so that they are qualified to provide financial advice to potential home buyers. They can help to calculate the long term savings and costs with each mortgage product, so that you know whether a deal with a free gift card really is the most cost effective option.
