As consumers attempt to save money and secure a new loan for their house, new flexible mortgages are becoming popular once again. Standard variable rate loans, or flexible mortgages are now cheaper than fixed loans and for many, they are just more convenient. However, there is more risk with a flexible mortgages and experts are warning consumers to be careful before getting into a deal that will cost more over time.
“At the same time lenders are increasingly keen on signing customers up to long-term deals which offer them certainty,” explained Sean Gardner, director of MoneyExpert.com. “Long-term fixed-rate mortgages are no longer an oddity. And with competitive rates of interest in some circumstances they may well be worth considering.”
NatWest’s offer for a free remortgage has intrigued many experts. Gardener continues, Sean Gardner, Director, MoneyExpert.com, said: “With higher mortgage fees very much in the spotlight this new offer from NatWest is certainly eye-catching. When some other providers are charging arrangement fees approaching £1,500 the offer of re-mortgaging fee-free is very attractive. The early redemption charge of 3% might be a sticking point but plenty of other providers charge as high as 4% or 5%.”
Related reading: Flexible Mortgages
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