New research looking into the mortgage markets has indicated that mortgage lenders are currently floating as many as six different versions of each of their key mortgage deals onto the market – even before any change of rates dependant upon the size of an individual’s deposit or how much equity they have. One example of this is Halifax’s three-year tracker deal, with a rate that is set at the Bank of England’s base rate plus 2.44% through until 2013. Such a rate reels people in as they see best-buy comparisons and adverts in today’s difficult climate. However, working out specific eligibility for this deal is exactly where confusion begins.

In order to qualify for this best deal rate borrowers will need a minimum of 40% equity if you are already a Halifax borrower as well as if you pay a fee of £999. Those who are not existing borrowers but instead have Halifax currents accounts will pay the base rate plus 2.76% as well as a £4 fee discount. For those who are neither borrowers of current account holders with the Halifax must pay the base rate plus 3.09% and can then also save £4 on the fee. The fee can also be cut to £495, however this will result in a rise in the interest rate to as much as 3.39% over the base rate depending on where your current mortgage and current account are held. Further, the definition of current account is not the Standard account but rather the Reward current account. This account demands a regular monthly payment of £1,000.

Other lenders are also undertaking similar practises, among them Northern Rock and Nationwide, with Nationwide charging different rates depending on just how the application is made. For example, applications through the website can be as much as 1% lower than through the branch. Whilst lenders argue that they are attempting to offer maximum choice to enable as many people eligibility as possible brokers state that the ensuing confusion can prove extremely expensive for borrowers attracted by low rates who are subsequently then offered a far less agreeable rate. As an example, even an extra 0.5% on the rate will mean an additional £42 per month payment on a £145,000 repayment mortgage. Because of this borrowers are advised to shop around and treat adverts with healthy scepticism, particularly if looking for deals on bad credit or re-mortgages with less-than-ideal histories.