23 Feb Beware of the True Cost of your Mortgage
When you are doing your own research about which mortgage might be suitable for you it’s easy to get overwhelmed. There are so many different deals out there from so many different lenders, banks, brokers and building societies it’s difficult to know which will be the best mortgage deal for you.
Lowest is not always Cheapest
You see, the deals with the lowest rates might not always carry the best overall value – in fact, some low-rate deals can end up costing the borrower thousands of pounds more than the deals with higher rates.
If you call us up to talk about your requirements you might hear us talk about the ‘true cost’ of your mortgage. This takes into account the fees and incentives that are attached to certain mortgage packages. There is talk within the industry of introducing this ‘true cost’ metric into the detail of the deal to help people be better informed when making their decisions.
Headline rates often omit these extra fees and sometimes it’s not until you’ve signed that you realise what some of the jargon in the contract really means. This is why it’s important to speak with a mortgage expert to get impartial advice and uncover what these true costs are so that you can budget accordingly.
One online mortgage broker found that some low-rate mortgage packages were costing nearly £1,000 more than deals with higher rates over two and five year terms. Even similarly rated deals were varying in their ‘true cost’.
One of the fundamental issues is that mortgage borrowers often don’t have access to clear, jargon-free information regarding their mortgage product. Many borrowers take on their mortgage packages without understanding all the information presented to them and don’t even consider the ‘true cost’.
Get in Touch
There are so many pitfalls and obstacles which could catch you out if you try and research a mortgage yourself. Our team have access to all the best deals out there and after taking in to consideration your specific requirements. We believe that transparency is key when it comes to financing your most valuable asset. We have a jargon-free approach and are happy to explain the details of various mortgage packages in language that you can understand.
So, if you are looking for solid, impartial mortgage advice make sure you get in touch with one of our expert mortgage advisers via email or on 01753 439000. You can also follow us on Facebook, Twitter and LinkedIn.
Photo credit: Yury Zap