Reward Mortgage UK

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Background
Reward mortgages in the UK can provide a solution for your property finance but it is usually a somke screen with makes you paying more in the long run. Indeed the Reward mortgages rate can be tempting but I would look for a variable rate disount by Citibank Barclays.

Beware of Reward Mortgages

These can cause problems such as higher monthly payments especially if you get a lot of reward frequently. So find a mortgage without such short term incentives and make sure you use a recommended Independent Financial Advisor.

Ideal mortgage scenario

Get a variable rate discount mortgage and not a reward mortgage such as the Abbey Santander one, with no extended tie ins and then keep on changing it at the end of two years.

It's likely these would provide a better deal than the reward rate mortgages especially of you have little savings to offset the capital owed.

Note: this is a personal opinion and you alone must make that choice. I have a mortgage with the Abbey National Santander in the UK which will last for another 18 months. At the end of this time I will be looking for another good deal, preferably with Santander, so that I will beat the fixed rate mortgage trap. Remember renewing variable rate deals are great especially if you can do it, without extended tie ins, and with the same bank to save on transaction costs.

But do not take a Reward Mortgage - please!

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