Remortgaging - Is It Worth Being A Rate Tart?
Mortgage lenders call people who switch mortgage lenders to
follow lower rates 'Rate Tarts' - as if that's going to put them
off! These are tarts with brains (not hearts) as we all know
that the best way to get the cheapest deal is to shop around,
and that's what they're doing!
The mortgage lenders are in heavy competition with each other to
attract the most customers, and although some offer other
incentives like free valuation and set up fees, it's the
interest rate that's the real clincher. As long as this is the
case, Rate Tarts will prosper!
Some lenders have increased their up-front charges in an attempt
to beat the Rate Tarts, and others offer incentives to existing
customers to retain their business. However, raising up-front
charges will do more harm than good, reducing the lenders market
share, even though their profit margins might be a little more
healthy.
Birmingham Midshires are the perfect example of this, they are
currently offering a 3.89% two year fixed deal, looks like a
great deal? Read the small print and it turns out that the
arrangement fee is vastly over the average of