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Home buyers urged to shop around for cheap mortgages

Date: Mon, 27 Feb 2006

Home owners are being encouraged to shop around for the best cheap mortgage deals on the market.

People looking to step on to the property ladder or remortgage their current home are being advised to think twice before committing to a long-term fixed mortgage deal without first checking out other cheap mortgages on offer.

The mortgage industry has recently introduced products that offer the security of ten year fixed rates; however, this may not be the best option for some borrowers – especially if interest rates fall.

The current cheap mortgage long-term products include Norwich & Peterborough Building Society's ten-year 4.88 per cent rate and West Bromwich's popular 4.69 per cent appealed to nearly half of its new borrowing customers.

Mark Chilton, at Purely Mortgages, speaking to the Daily Mail, said: "There are some very attractive ten-year deals, but they will suit only those who are pretty certain that their circumstances will not change over the period."

Fixed rate mortgages often have substantial redemption charges and may not always represent the best cheap mortgage deal in the long-term.


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