Beware of 'Freebies'

Mortgage lenders are prepared to lend first time buyers much higher amounts and offer lots of headline grabbing 'freebies' - free valuations, free legal fees, cashback, free insurance…
But beware – some nice 'freebies' doesn't necessarily make it a good deal.

i. Very low interest rates:
If you see a mortgage rate of 2% or 3%, be a bit cautious. To get this, you may have to pay a higher than normal standard variable rate of interest for a number of years afterwards, which could cost you thousands of pounds more in interest in the long run.

ii. Extended tie-in:
If you wanted to change your mortgage to a better deal in a few years time, you could face penalty fees running in to thousands of pounds if you try to get out of your mortgage deal early.

iii. High lending charges:
You need to check whether the mortgage provider charges a 'higher lending fee', which they may charge for mortgages that exceed a certain level of loan to value ("LTV").