Mortgage borrowers advised: know what your payments will be

Those who take out mortgages with lower payments at the start should be prepared for the increase in cost when the introductory period finishes, an expert has advised.

Managing director of first-time buyer services firm Firstrungnow.com Helen Adams said such deals could help some buyers to get on the ladder, but added: “You should always be aware that those costs will go up at the end of the period.”

Whether such arrangements will be a good idea or not in any particular case “depends upon the circumstances of the borrower”, she added.

She added that keeping fees down is one thing borrowers will find it harder to do, as agents and lenders are having to levy these to meet their costs in a restricted market.

Mortgage borrowing has continued to rise, according to the most recent Council of Mortgage Lenders figures.

These indicated a five per cent month-month increase in lending in October.

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