Those looking to remortgage need to shop around for best deals
Experts are warning that consumers looking to remortgage need to make sure that they are shopping around for the best deal, taking all factors into the equation rather than being duped by glossy advertisements, seemingly low rates, and sales pressure.
Many people are flocking to remortgage as interest rates continue to rise. The Bank of England has hiked up the interest rate four times in the last nine months, taking it from 4.5% last August to 5.5% earlier this month.
According to data and research from Moneyfacts many people are rushing out to remortgage homes and are choosing the wrong mortgage product or provider, leaving them paying thousands of pounds extra over a short period of time in interest.
According to Moneyfacts experts some consumers who have remortgaged and gone for the wrong deal could be paying out up to four thousand pounds in additional interest over a period of as little as two years.
Consumers are being warned that often the lesser known mortgage providers and brands offer the best deals. They are also being urged to look out for administrative charges and arrangement fees, which can run into thousands and can really bump up the cost of a seemingly good value mortgage deal. Without doing this consumers could lose out on thousands of pounds.
One Moneyfacts official stated: 'Losing such sums is staggering. It shows that the rate is not everything and that different lenders are better for different circumstances so the ones mentioned may still be useful for other borrowers.'
A broker from London and Country stated: 'A first time buyer with a 5% deposit is better off taking a different deal to someone with a 25% deposit.'
Consumers are advised to seek advice from an independent mortgage advisor if they are unsure before tying themselves into a deal that could end up being very costly.
Tom Smith
21st May 2007
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