Lowest Rate Fixed Mortgages

0% Mortgages: Too Good To Be True?

There are now mortgages in the marketplace that have 0% interest for a set period of time. Yes, that’s right – 0% interest!

So, are 0% mortgages really too good to be true? Let’s have a look at the figures.

At the time of writing, the Yorkshire Bank offers a 0% fixed rate mortgage for 6 months. After the set period, it reverts to 6.65% and you are tied in to the provider until April 2012.

Over five years, you’ll be paying a total cost of £37,114.18 (based on borrowing £100,000 on a 25 year mortgage term).

Now look at a deal offered by someone else – say Market Harborough BS, who currently offer a fixed rate deal of 2.10% reverting to 6.8% after two years. Over five years, you’ll be paying a total cost of £34,964.88 for the same amount of borrowing.

So, with the latter, you will be paying less overall with a 2.10% mortgage compared the 0% mortgage.

The golden rule here is, when choosing a mortgage, by all means consider one with 0% interest. Certainly, the Yorkshire Bank 0% mortgage allows you to reduce the capital by a maximum of 10% of the outstanding balance p.a. so this could be a way of reducing your overall costs.

Make sure that you do your calculations first to ensure that you really are paying as little as possible for your mortgage.

Bad Credit Mortgage Guides UK : 100% mortgages for bad credit ... a flexible option is available on all products (including buy to let and right to buy and) and offers ... keeping them on your file - particularly if they have experienced financial difficulty in the past

Mortgage Quote For Bad Credit : mortgages for people with bad debt ... there are also a number of tailor made options available to match the consumer's needs (and budget) ... if you haven't got the money, your home could be repossessed

100% Mortgages Unsecured Bad Credit : bad credit 125% mortgage ... finally, consider taking out an mppi policy - mortgage payment protection insurance policy ... because the mortgage marketplace is so competitive now and there are always better deals than your