Many home owners attracted by 'best buy'
mortgages could be losing money if they do not factor in high charges, an expert has said.
According to a recent study conducted by moneysupermarket.com, it is possible for borrowers to lose around £3,000 on an average £150,000
mortgage across a two-year term.
Clare Francis, the website editor, said it is important for potential customers to calculate all the fees involved rather than assume they are getting the best deal.
“When it comes to looking for a
mortgage, borrowers mustn’t be blinded by attractive looking headline rates,” she explained.
Ms Francis added that it is essential to “factor in” arrangement fees, as these can have have a substantial effect on the perceived value of the product on offer.
“Charging high fees enables lenders to showcase extremely low rates without missing out on profit and it’s clear that some of the current best buy products have been released for marketing impact, rather than real borrower benefit,” she added.
The site advised anyone looking at the
mortgage market to always calculate the total cost over the term of the deal before signing up.
