'Read the small print' when arranging a mortgage

Posted: 06 Aug 2010 11:09:29 GMT

People who are planning on getting a mortgage need to look at more than just the initial rate on offer, one expert has suggested.

Head of member and external relations at the Council of Mortgage Lenders Sue Anderson urged potential borrowers to explore all options carefully.

"Borrowers clearly need to get a clear picture of the overall benefits and limitations of the mortgage that they might enter into. They need to look at all its features," she added.

The specialist's comments follow the release of a report from HSBC, which revealed early redemption charges – which include early repayment fees - on a mortgage can differ by as much as £6,090 on a loan for £150,000.

Ms Anderson observed such payments are common but should be made clear to customers, as then this will give them the opportunity to opt out of the deal.

The Bank of England recently revealed the number of new home loan approvals fell to 47,643 in June, compared with 49,461 in May.
 

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