New Mortgage Deals - Still Available? - Hot Topics Q & A

Q. I have heard that there are not as many good mortgage deals available as there were a few months ago. I am about to come to the end of my existing deal. What do you suggest and what steps should I take?

A. Yes, you're quite right. Following the Northern Rock affair last year and the ensuing 'credit crisis' many lenders have since reduced the amount of deals they are offering and restricted the amount of money they are willing to lend and who they are prepared to lend to.

The good news is there are still very competitive deals available to those who have a good credit record and who can prove affordability.

The first step to take is to contact your current lender and ask them what deals they can offer you for them to retain your business. Don't be surprised if your lender does NOT offer you a deal. Some will just let you move away from them.

Then contact a whole of market mortgage broker (or do your own research) and ask them to try and better the deals you've been offered. Make sure you compare ALL the costs that may be incurred if you move lender (valuation, legal, arrangement fees).

You can then decide if you prefer a fixed, tracker rate etc.

I hope this helps!