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First Time Buyer

The AA launches mortgage range for members

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
23/08/2016

The breakdown provider has entered the mortgage market, with deals exclusively for its members

The AA has launched a range of mortgage products, backed by Bank of Ireland UK, and available exclusively to its breakdown members.

The range includes fee-free two, three and five-year fixed rate mortgages and a best-buy four-year fixed rate product at 2.78% up to 75% loan to value, 2.88% up to 80% and 3.53% up to 90% LTV.

Members can also benefit from the AA’s home emergency and repair cover and central heating emergency and repair cover, for 12 months, as well as a 15% discount on AA Home Insurance.

Mortgage MOT

The AA is offering members a ‘mortgage MOT’ where they can call a team of experts to see if they could save money, from the AA Mortgage range. There are nearly two million borrowers on a Standard Variable Rate (SVR) and, despite the recent reduction on the BoE base rate, these rates are still likely to be above 3.8%.

People could be saving a potential £1,625 each year, said the AA, by switching from a default SVR to a better deal. But, despite the possible savings, the majority do not consider changing, with the average AA member having been on the same mortgage deal for over five years, and over a fifth for more than 10 years.

Michael Johnson, director of financial services at the AA said: “This mortgage range has been developed to respond to the needs of our members. Lots of people are currently on mortgage deals where they are spending far more than they need to. This could be down to a combination of high fees and a lack of information, stopping them from switching to a better deal.

“We want to help our members by removing hidden costs and providing simple, straightforward mortgages, with all standard upfront fees included.”