Latest mortgage deals

Here are some of the best latest mortgage deals available on the market at the moment. These are a range of discounted, fixed and capped. They range from two to ten year deals and cover quite a range of interest rates, but the best deal will depend on your personal circumstances. As they have been much in the news recently, look out for high fees – and here there are booking fees, arrangement fees and early redemption charges, but none of them are at the top of the range, although those with percentages can of course get higher with bigger mortgages. Do your calculations! Set up your own spreadsheet so you can compare all the mortgages on offer with your own numbers. You can then perform a few “what-if” scenarios, so that you can understand how much it will cost you over two, five or maybe even ten years.

Saffron Building Society has a discounted mortgage on offer. The discount is 2.4% for two years. The Society’s base rate is 7.34%, so the initial rate is 4.94%. There is a maximum loan-to-value (LTV) of 85%. The mortgage is portable, and Saffron will pay solicitor’s fees for “next time buyers” only. The valuation fee will depend on the value of property. There is an arrangement fee of 1.5% which will be added to the mortgage, so watch out of that if you need a bigger mortgage (a £300,000 mortgage would mean £4,500 being added to your mortgage).

Ipswich Building Society is offering a three year discounted rate at 2% off its base rate. Currently that stands at 7.49%, so the initial rate is 5.49%. It has a maximum LTV of 90% and the scheme lasts until August 2010. The mortgage is portable, and the lender will provide a free valuation, and free Accident, Sickness and Unemployment Insurance for three months. There is an early repayment charge which is 3% of the mortgage, and this lasts for the duration of the scheme. There is a booking fee of £399 which is payable up front, and an arrangement fee of £999 which will be added to the mortgage. This is just about 1% of a £100,000 mortgage.
Alliance & Leicester Prime has a five year discounted mortgage on offer at 2.28% off their base rate, which currently stands at 7.64%, so the initial mortgage rate would be 5.36%. The maximum LTV is 95% and the scheme lasts five years. The mortgage is portable, and there is an early repayment charge which is 3% of the mortgage, and this lasts for the duration of the scheme. The valuation fee will depend on the value of property. There is an arrangement fee of £999 which will be added to the mortgage. If your mortgage is only small, say £50,000 then this fee is about 2%, but if your mortgage is say £250,000 then this fee represents less than 0.4%.

Cheshire Building Society is offering a ten year fixed deal at 5.84%. The lender’s base rate is 7.54%. The maximum LTV is 95% and the mortgage is portable. The society offers a free mortgage valuation up to £495, and free Accident, Sickness and Unemployment Insurance for three months. Early repayment charges work out as follows: 5% of original loan for the first 2 years; 4% of original loan for the next 2 years; 3% of original loan over the next 2 years; 2% of original loan for the next 2 years; and 1% of original loan over the next 2 years. There is a booking fee of £100 which is payable up front, and an arrangement fee of £799 which will be added to the mortgage. This is just about 1% of a £80,000 mortgage.

Principality Building Society is offering a two year fixed deal at 5.79%. The lender’s base rate is 7.69%. The scheme actually runs to October 2009, so it’s just over two years. The maximum LTV is only 75% and the mortgage is portable. There is an early repayment charge which is 3% of the mortgage, and this lasts for the duration of the scheme. The valuation fee will depend on the value of property. There is no booking fee, and an arrangement fee of £999 which will be added to the mortgage. This is just about 1% of a £100,000 mortgage.

Abbey is offering a five year capped mortgage. The initial rate is 6.29% and the maximum LTV is a very low 60%. The lender’s base rate is 7.84%. The scheme actually lasts until October 2012. There is an early repayment charge which is 5% of the mortgage, and this lasts for the duration of the scheme. That’s high so watch out for that – you don’t want to pay this mortgage off in the first five years. There is a booking fee of £499, payable up front, but no arrangement fee.