The truth behind the mortgage headlines

Published: 21/08/2013

Homebuyers and remortgagers are increasingly falling foul to misleading ‘headline rates’, according to The Sunday Telegraph.

Lured by ultra low rates, clients are failing to take into account the full cost of their new mortgage including exorbitant arrangement fees, an error which, by the broadsheet’s calculations, could leave them thousands of pounds worse off.

In its report, The Sunday Telegraph revealed that when comparing the total cost of the mortgage (i.e. the monthly repayments plus the arrangement fees) the market leading rate was ‘rarely, if ever, the best option for borrowers’.

Senior partner at Goldsmith Williams, Eddie Goldsmith, comments on these findings:

“We have always been fully aware of the important role a mortgage broker plays in conveyancing and remortgage transactions – that is why we have always been an advocate of this service.

“These results just confirm what we already know; that clients would really benefit from the expertise of a financial professional when buying a new property or remortgaging their existing one.

“Having the knowledge and experience to explain the full financial implications of a mortgage deal is one of many benefits of using a mortgage broker. Others - including convenience and impartial advice as well as exclusive deals – are all outlined in our free infographic ‘

Content correct at time of publication

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