Mortgage choice brings confusion

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by Kay Murchie

Moneyfacts, the financial information specialist, has announced a jump in the amount of homeloans available bringing confusion to consumers.

The choice available is puzzling consumers with lenders’ ranges running into hundreds of products and bargain deals proving more expensive than higher rate products.

The report by Moneyfacts demonstrated that big lenders are offering a baffling assortment of loans with Abbey having 89 different products, Scottish Widows 97, Cheltenham & Gloucester 101 and Standard Life an astounding 219.

A spokesperson for Moneyfacts remarked that the amount of mortgage products offered by some lenders is more than enough to confuse consumers. The increasing selection of mortgage products is only part of the decision process for borrowers. They also have to consider legal and valuation fees.

Moneyfacts concluded that higher lending charges for homeowners needing to borrow above certain loan-to-values will often prove more expensive than taking a slightly higher interest rate product without a charge.