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Mortgage prizes: are they worth it?

Mortgage prizes: are they worth it?

Category: Mortgages
Author: Lieke Braadbaart
Date: 05/11/2018

Today sees the launch of a truly exceptional prize draw, as Halifax is offering its mortgage customers the chance to have their entire mortgage paid off. This isn't the first prize draw enticing mortgage holders to take a gamble for the chance of large rewards, but it may very well be the biggest one yet.

Three lucky winners will have their entire mortgage (up to £300,000) paid by Halifax, while 100 others are due to win £1,000 each. And yet, none of the mortgage deals that are part of the prize draw (people will need to apply for a certain mortgage between now and the end of the year to be eligible) feature in the mortgage Best Buy charts.

So, you may be set for life if you win, but if you're not lucky, you may end up paying more than you have to for your mortgage. Meanwhile, there are mortgages that manage to both offer cashback as an incentive and feature in the Best Buys.

While you shouldn't look only at the incentives when deciding on a mortgage deal, you shouldn't focus solely on the rate either. There's likely to be fees to take into account, and you may want to dive into the details to find out what further charges are attached to the product.

If you do want to take your chances with a prize-draw mortgage, it might be a good idea to note down the early repayment charge attached to it. That way, if you don't win the prize and you see a better deal elsewhere, you'll know how much you'd need to pay to get out of the deal early and remortgage to a better rate.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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