Due to the heavy increase in mortgage activity this year, we have seen many lenders competing to offer the most attractive mortgage rates along with added incentives. Leeds Building Society as an example, did shakeup of their buy-to-let products and offered free valuation and free legal advice. Halifax are offering cash back to first time buyers with a Halifax current account.
This week we also saw builders using incentives to attract a large proportion of the busy property market. As reported in the Yorkshire Evening Post, Ben Bailey Homes launched an exclusive ‘Express Move’ incentive. “The scheme has been designed to help buyers find their perfect home at the development and move in quickly. Those who reserve a property this summer can benefit from a whole host of added extras, with stamp duty paid, legal fees and mortgage valuation fees covered and a themed landscaped garden worth £5,000 included in the price”.
The incentives offered don’t just stop at free legal advice and fancy gardens, one Russian bank took the incentives to a whole new level and has begun offering cats to clients who obtained a mortgage through them! (http://www.bbc.co.uk/news/blogs-news-from-elsewhere-28951981)
As always it is important to look passed the initial incentives that lenders offer no matter how great they may seem. It is very important to look at the whole picture. Although getting cashback and free cats sounds great, these products aren’t always the best option to take.