Garnering a lot of media attention, a sub-one percent interest rate on a mortgage that was recently revealed, has caused a lot of consumers to wonder whether such low rates are too good to be true. With interest rates never having been this low before, are these tempting offers everything they seem on the surface?
Did you read the fine print?
Advertising low rates is a great marketing strategy for encouraging consumers to enter a bank and sign up for a mortgage, but it’s important to read the fine print very carefully before signing up, to ensure that you’re actually getting a good deal.
What should you look for in an ultra-low interest mortgage?
You must ask plenty of questions when considering signing up for a low interest mortgage, and read through the terms with a fine-toothed comb. Alternatively, if you’re worried about signing up for something that may not be in your best interests, you can work with a mortgage broker, who will explain everything to you in layman’s terms, and help you shop around for the right deal.
If going it alone, be sure to ask how long you’ll be locked into the borrowing plan and what will happen if you need to break your mortgage at any point - and for any reason - in the future; will there be a penalty, and if so, how much will it be?
Penalties are almost always listed in the fine print of every mortgage deal, so check them over and seek help from a professional mortgage advisor or broker, if you’re unsure about any aspect of the contract.
Don’t be tempted to go it alone if you have any doubts
While you can search for the right mortgage deal on your own, you’ll find the entire process is made far simpler if you engage with a professional such as a broker, who has plenty of experience and more importantly, access to some of the best deals that aren’t marketed publicly. When going it alone, it can be tempting to simply pick a mortgage with the lowest rate of interest, but getting slapped with a hefty fine for breaking the contract can leave many borrowers wishing they’d invested in professional help.
Low interest rates aren’t everything when it comes to mortgages, and sometimes paying a slightly higher rate that gives you the flexibility you need when something unexpected happens in your life, can be the better deal. With a professional mortgage broker’s help, you can make sure you sign up for a deal that has your best interests at heart.