Range of factors ‘should be considered’ when taking out home loans

Consumers planning to compare home loans should take a range of factors into account, it has been advised.

According to Britannia, the temptation to focus on interest rates alone should be avoided in order to find the best deal.

The building society’s managing director of new business, Tim Franklin, explained that charges such as arrangement and valuation fees need to be considered in order to determine the “true cost” of a loan.

“Although there are some great rates available in the market at the moment, it’s important that borrowers look at the overall package, not just the headline rate,” he added.

Recent Bank of England base rate reductions have meant that mortgage interest charges have dropped for many customers, but Mr Franklin explained that while Britannia’s rates may seem comparatively high, their products still represent good value.

Last week the Bank of England’s monetary policy committee maintained its base rate at 0.5 per cent.

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