Homebuyers urged to look at "true cost" of mortgages!
Published ¤ 29/04/2009
Homebuyers (and those looking to remortgage) need to look beyond the "headline-grabbing" fixed rates being offered by some banks. Rather, they should look at the true cost of the loan.
Whilst a good rate is great for attracting customers, it is not always the best value for them. All the costs, arrangement fees, valuation fees and booking fees, need to be taken into account when calculating the true cost.
For this reason it is important to get truly independent advice from a broker that has access to every lender.
We carried out a comparison of all the latest fixed rates, and compared the true cost of them over a period of 2 years, assuming a £100,000 mortgage on a repayment basis over a term of 25 years.
Although HSBC had the lowest "headline" rate of 2.89%, they were ranked only 14th, costing over Â£600 more than the best value deal over 2 years.
The best value deal was 3.59% from Barnsley Building Society. The reason it was such better value was that the arrangement fees were substantially lower than those of HSBC.
Of course, there are also lenders that are attempting to attract customers with "fee free" deals, but these are often coupled with higher rates.
So, the message is clear - get "truly" independent advice from a mortgage adviser that has access to every scheme on the market.
PKS offers "truly" independent mortgage advice, as well as advising on other financial needs of the homebuyer. For a FREE, no obligation chat click here to send us a message, or call us on the number at the top of the page.
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