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Look around for most suitable UK mortgage

Date: Thu, 06 Oct 2005

Potential homebuyers are being encouraged to ensure they look around to discover the most suitable UK mortgage product.

Advice from Moneyextra suggests that first-time buyers should consider carefully whether to chose a fixed rate product and how long they are committed to making repayments.

The increasing competition on the high-street means that some lenders are keen to attract new customers by offering low fixed rates, although people are being advised to double-check potential hidden costs such as high arrangement fees, valuation or overpayment penalties. In addition, buyers need to consider what the standard variable rate will rise to once the initial fixed period ends.

Those stepping on the property ladder for the first time also tend not to stay in their first house for a substantial period of time so they may be better picking a short-term mortgage or a home loan that is portable without attracting any early repayment charges.


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