Watch out for the small print

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by Kay Murchie

It has been apparent for many years that mortgage brokers have significantly increased fees and experts have warned that failing to take into account varying end dates for fixed rates could add large costs to a mortgage bill.

Some top deals now have fees attached of £1,500 or more, but if a borrower does not have a big loan, then this is not worth taking. In addition, not reading the small print could mean that you are missing out on great deals. Valuation, admin and booking fees added to fixed rate deals can all have an affect on the actual cost of a mortgage.

The majority of borrowers do not know that initial deals on 2-year fixed rates do not necessarily finish 2 years after the loan started. The fixed rate will usually run until a set date, at least 2 years away but perhaps longer.

John Charcol, mortgage broker, commented that borrowers fail to notice the month part of the end date when opting for a specific mortgage. In addition, some borrowers may want to select the shorter end date, but they must be aware of the terms and ensure that they are tailored to their needs. Borrowers can sometimes overlook high arrangement fees in order to get the best deal.