Buyers urged to shop around

Those looking to compare mortgage rate fees are being encouraged to shop around for the most suitable deal.

According to moneyfacts.co.uk, low interest rates can seem tempting but could be offset by a high set-up fee, which may not be suitable for a smaller mortgage.

Research conducted by the website found that a number of mortgage products with the combination of low rates and high fees could be beneficial for those borrowing higher amounts.

However, potential buyers are being advised to find a “break-even point” where the low rate is enough to justify the high start-up fee.

“These low-rate offers are not for the mass-market and only provide financial benefit to those with larger than average mortgages,” said Darren Cook, head of mortgage research at moneyfacts.co.uk.

He added that buyers should not be “lured by low interest rates”, because “if the deal looks to good too be true, it often is”.

In related news, it has been found that 17.3 million first-time buyers believe they are unable to get on the property ladder, with 7.4 million citing high house prices as the main reason.

© Adfero Ltd

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