Although high rates appear to be the norm in many cases, it does look like some companies are dropping the cost of finance loans. While rates are still higher than normal, these cheaper finance products may be the sign of better times to come. There is a huge demand for cheap finance products and although some banks are making the switch, it is certainly not yet widespread. Until the housing market changes, rates may continue to go up with just a handful of lenders willing to offer a competitive finance package. The old rule of needing good credit will certainly still apply for these cheaper finance loans.
“In the current market conditions the costs of a new mortgage can prove too much of an extra burden to customers.” said Chris Pilling, chief executive at first direct. “Our new fee free offset tracker offers a great mortgage rate with no costs at all, apart from the loan itself.
“Also with the offset facility it means that even if customers only credit their salary every month with no extra savings they will be better off than with the equivalent non offset mortgage at the same rate.”
Related reading: BrightLight
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