4 Aug

Homebuyers given warning about best buy mortgages

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. ADNFCR-1222-ID-800012888-ADNFCR

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