How to work out the best fixed rate
Grrrr. This gets my goat.
Some research has just crossed my desk (on a fast track from printer to recycling bin) from financial information providers Moneyfacts. It conducted a poll and found that more than half of consumers think they have been misled by an advert offering an amazing headline rate on a savings account or mortgage. The only surprising thing is that it is not more.
Take two two-year fixed-rate mortgages (and this is a real example) - one at 4.34 per cent and one at 4.39 per cent. Now which is cheaper for a £100,000 mortgage? You will pay £700 more with the lower rate. And this is all down to fees, more than a grands worth.
We are always being told 'look at the total cost of the mortgage' but it seems that there are plenty of people that ignore this plea. Otherwise banks and building societies would not keep trying to lure us in with these flashy rates.
My colleague Charlotte Beugge was talking about how she will always use a broker for a mortgage, and this is why I agree (personally I would opt for one that does not charge fees). But whichever you chose they should be able to work out which is best for your individual circumstances.....without getting blinded by headline fees.
We get a lot of feedback from readers on mortgage brokers that they have used. Particular positive responses have been give about John Charcol, London & Country and Purely Mortgages.
I'll leave it up to you to decide which one is best for you - but ask them from the off how they can help and what they will charge you.
Posted by: James Coney | November 07, 2005 at 12:03 PM
Is there a particular broker that you can recommend?
Posted by: Bryan McD | November 06, 2005 at 05:58 PM