4
Aug
Homebuyers given warning about best buy mortgages
People looking to purchase houses for sale in the UK have been
urged to carefully consider best buy mortgages.
HSBC recently released a study, which showed that despite being
cheap to get into, early redemption charges on some of these loans
could vary as much as £6,091.
This figure is based on a typical £150,000 mortgage and
highlights the difference between redemption charges from the
cheapest and most expensive loan lender.
HSBC advised homebuyers that for borrowers who are less than 14
months away from their fixed-rate loan ending, it is a cheaper
option to continue paying their mortgage than trying to redeem
it.
Head of mortgages at the company Martijin van der Heijden said: "It
is essential that borrowers check behind headline rates for high
exit and redemption fees."
Editor at What Mortgage Ben Wilkie said that the return of capped
fixed-rate mortgages will also be able to protect homeowners from
high charges in the future - incurred by a sharp increase in
interest rates. 