Mortgage freebies becoming a popular option for lenders

March 23, 2016 by Brendan O'Neill

Lenders

As lenders continue to battle for the custom of borrowers in a fierce mortgage market, many are now offering free gifts as incentives for buyers to take out a mortgage with them.

As mortgage rates are at their lowest for many years, lenders are looking at new ways to attract customers, and freebies are becoming a popular option with some. Borrowers can now benefit from some of the lowest interest rates combined with a wide range of incentives.

According to research from Moneyfacts, 75% of the mortgage market offers an incentive package, providing lots of choice for customers. Moneyfacts finance expert Charlotte Nelson said:

“Providers are finding it increasingly difficult to stand out from the crowd to attract new customers thanks to the rate-cutting frenzy that has gripped the mortgage sector. The incentive package is therefore a great way to distinguish themselves from other lenders.”

Among the most attractive incentives are those that help with upfront costs, like free valuation or legal fees, or even cash back to pay for some of those initial expenses. According to Nelson, offers that assist with upfront costs are particularly attractive to first-time buyers, who may have used all their spare cash for the deposit.

As there are so many mortgage deals and incentives to choose from, it can be overwhelming when selecting a lender. However, mortgage advisers take a CeMAP training course so they can offer suitable advice to buyers. Seek professional assistance before making a final choice so you maximise the deals on offer.