Print

Borrowers told to 'widen the net'

Jaimie Kanwar

Lax homeowners could be overpaying by up to ₤18,000 over the life of their mortgage, claims one company.

With borrowers finding it increasingly more difficult to get a mortgage, as lenders reduce the choice of mortgages and increase interest rate charges, Spicerhaart Financial Services reveals that homeowners who do not trawl through their options thoroughly could pay on average £18,000 more over the term of their mortgage.

1.4 million Homeowners will be coming off their fixed rate deals this year, and will be automatically transferred to a standard variable rate of 7%.

However, based on an average £150,000 mortgage for a property valued at £200,000 and 20 years remaining on the mortgage, homeowners could save £18,000 over the term of their mortgage, by using an independent financial adviser to help find the most competitive remortgage deal available.

In recent weeks, consumers have been encouraged to cut out brokers and go directly to lenders when selecting a mortgage product but the importance and advantages of using a broker to save homeowners time and money should not be overlooked.

Independently consulting lenders and searching for deals can be extremely time consuming.  Intermediaries who are unbiased towards a particular lender or product will give a full and accurate view for the customer, saving them time and effort.

Steve Cox, Operations Director of Spicerhaart, comments:  "With lending criteria tightening, products rapidly coming on and off the market, and lenders rates changing, it is essential that consumers get the best guidance possible.

"Brokers provide independent, comprehensive and invaluable advice for those looking to remortgage. In this current climate it is more important than ever. The figures speak for themselves, finding the most appropriate remortgage deal can save borrowers thousands of pounds."