Deals

STEP FOUR:
Check the small print. Mortgage deals that look too good to be true normally are. One of the key things to avoid are known as ‘overhanging’ or ‘extended’ redemption penalties. These mean you have to pay big penalties if you want to pay off a big chunk of your mortgage, to move it on to a different rate or to a different lender even after the special offer fixed or discount offer period had ended. If you sign up to one of these deals you will be forced to pay your lender’s high standard variable rate during the extended term – and this can take back any savings you made during the low rate special offer years. Experts say you should always try to find a deal that leaves you free to shop around as soon as any special rate deals are over. See the final point for more advice on this.