Mortgage costs ‘still too high’

Mortgage costs may look reasonable to some, but they are “obscene” in view of the low base and Libor rates, it has been argued.

Chief executive of first-time buyer services firm Firstrung Paul Holmes criticised deals such as the 6.99 per cent offering with a 95 per cent loan-value recently launched by Yorkshire Bank.

He said: “You could argue that £700 as a first-time buyer for every £100,000 borrowed is not bad, but it is very bad in relation to Ö where base rates are.”

Those keen to take out a mortgage may wish to look around at what is the best deal available at present.

Earlier this month, partner relationship manager at online change of address service iammoving.com Jon Brown said the recent 1.99 per cent deal with a 40 per cent loan-value being offered by HSBC might have a positive influence on other banks.

It could “spark” them into providing a range of similar products, he suggested.

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