Repayment Charges + Arrangement Fees = Haven’t a Clue
The expertise of a mortgage broker have never been more apparent after a survey by consumer group Which? revealed a staggering 99.5% of homeowners and buyers were unable to work out the total cost of mortgage deals.
Participants were asked to list five two-year fixed rate mortgage deals in order of the full costs, taking into consideration not just the monthly repayments but also mortgage arrangement fees.
Out of the 1000 people questioned only 5 people (0.5%) correctly ranked all deals.
- 49% said the test was easy
- 27% identified the cheapest and most expensive deals
- 30% of those who have remortgaged and 25% who have bought a property in the last five years spotted the cheapest and most expensive mortgages
- 22% of potential homebuyers recognised the cheapest and most expensive deals.
Lynne McCaffrey is the Head of Property at Goldsmith Williams:
“The results of this survey are simply staggering. It really is quite shocking that so many people are unable to calculate the total cost of a product, particularly with something as expensive as a mortgage.
“When it comes to buying property, there are so many ways for a buyer to trip up financially. Lenders are not alone in their attempt to lure clients in with fantastic headline rates and prices – many solicitors also play this game by failing to include all compulsory charges including search fees and Stamp Duty.
“The results of this survey along with one of our own purpose-built infographics will hopefully alert homebuyers and remortgagers to the overwhelming benefits of using a broker or financial adviser when choosing a mortgage while our latest infographic will highlight the importance of using a CQS-accredited solicitor.”
Content correct at time of publication