AA launches mortgage deals for all
The deals are backed by Bank of Ireland, as is the case with the AA’s other financial services.
The products include a five-year fixed rate at 3.99% with no fee for borrowers with a 5% deposit, and a two-year fixed rate at 2.38% with no fee for borrowers with a 10% deposit.
The deals were previously exclusively available to AA members only, but are now open to all applicants.
Michael Johnson, director of financial services at the AA, said: “The AA is here to help and we are now able to offer a selection of mortgages to suit a variety of buyer needs.
“This competitive range aims to make mortgages simple and straightforward, with options for an array of borrowers – whether it’s those wanting to take their first step onto the property ladder or those simply wanting a better deal by remortgaging.”
How good is the AA’s offering?
The AA has provided other financial services for many years such as credit and while it may not be a borrower’s first thought to approach their car breakdown provider for a mortgage, it does offer competitive deals which “should not be dismissed” according to Charlotte Nelson, finance expert at Moneyfacts.
“The AA’s 3.99% five-year fixed rate deal at 95% loan-to-value is highly competitive sitting as the lowest deal in its sector making its mark on best buy tables as a result. The fact this deal has no arrangement fee means this is likely to be a popular choice among first-time buyers,” she said.
“The 2.38% two-year fixed rate at 90% is not the lowest deal in its sector, with deals starting from as low as 1.83%. However, when compared to other deals with no fee this sits just shy of the HSBC mortgage priced at 2.34% for two-years.”
Nelson added that borrowers will need to shop around looking at the true cost of any deal to ensure they get the best option.