AA Mortgages has launched a range of fixed-rate mortgages that includes fees-free options and first-time buyer products.
Borrowers with a 5 per cent deposit can choose from a two-year fix at 3.82 per cent, which comes with £200 cashback and a free valuation, or a five-year fix at 3.99 per cent.
For those with a 10 per cent deposit, the lender is offering a two-year fix at 2.38 per cent or a five-year fix at 2.88 per cent.
Borrowers with a 15 per cent deposit can opt for a two-year fix at 1.43 per cent or a three-year fix at 1.87 per cent, both of which come with a £995 fee.
Alternatively, they can choose a five-year fix at 2.19 per cent, which comes with a free valuation and a £1,495 fee.
Customers can also benefit from free standard legal fees and AA features, such as 15 per cent off AA home insurance, 12 months AA Home Response Plus and AA Central Heating Response Plus coverage on selected mortgage products.
A number of the products also come with free standard house valuations and £400 cashback.
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.”
Ian Ward, managing director at Wirral-based The Mortgage Partnership, commented: “This is a really competitive offering with very welcome fee/no-fee options.
“With rates as low as they are, the actual difference in rates with or without fees is not as relevant in terms of monthly costs as they were when rates were higher, so the option not to pay a fee will be very welcome to many.
“I would like to see more cashback options rather than 'free legals', but I am being picky. At a time when lending alternatives are beginning to converge, the AA has been bold in its approach. I also can't fault them for looking to offer discount on some of the ancillary services that the AA offers."
simon.allin@ft.com
