The AA has this week launched a pair of competitive new mortgage deals, although they are only available to AA breakdown cover members.
The products are a five-year fixed rate mortgage at 2.23% and a three-year fixed deal at 1.84%. Both products are available for borrowers with at least a 15% deposit (85% loan-to-value) and come with a £1,295 product fee.
Better known for its motoring services, the AA has expanded its financial services proposition in recent years. The firm launched its first mortgage products in August 2016 and also offers credit cards, personal loans and savings accounts.
However, the catch is that the two new deals are available exclusively to AA breakdown cover members.
Michael Johnson, director of financial services at the AA, says: “The mortgage market is extremely competitive at the moment and we want our members to benefit from that, which is why we’ve introduced a new range of competitive fixed rate mortgages.
“Homeowners should regularly review their mortgage. Even for those still in a fixed period, a good rate from a few years ago may not be a good rate today.”
Unlike its middling savings products, the AA’s mortgage range is very competitive if you’ve got its breakdown service – although whether it’s best for you depends on exactly how much you’re looking to borrow.
Ensure you use our mortgage comparison tool, which is provided in partnership with mortgage broker London & Country, to check – and remember to include fees into your costings.
If you’re worried about taking out a mortgage from a company better known for breakdown cover, bear in mind the AA’s mortgages are provided in partnership with the Bank of Ireland UK.