11 Feb 2016
Mortgage rates have fallen to a record low and borrowers can now choose from 4,500 mortgages - so how do you find the best deal?
Assessing the overall value of a mortgage is becoming even more crucial, and that means looking beyond the headline-grabbing rate.
It is important to read between the lines (or in the small print) and consider everything from the incentives to the fee, the latter being particularly pressing.
New figures from Moneyfacts.co.uk have revealed that the average mortgage fee today (£956) has now hit a 21-month high, being the highest recorded since May 2014 when the figure stood at £973.
Both providers and borrowers are keen to focus on the interest rate, which could mean that the costs of a large fee are not factored in.
However, high fees can have a big impact on the cost-effectiveness of a deal, particularly when they are added to the mortgage advance, which increases the amount borrowed and pushes up the of the monthly repayments.
Allan Gardner, Financial Services Director at Aberdein Considine, said: "Borrowers need be wise to look at the true cost of the mortgage, taking into account any fees and incentive packages, to ensure that the most cost-effective deal is obtained.
"In the current low-rate market, some borrowers are switching deals once their fixed rate comes to an end, but that deal need to be right for you - in some cases large fees can make moving to a new deal a costly affair, particularly if borrowers prefer shorter-term mortgages.
"An Independent Financial Adviser can help guide you through all of this and make sure you get a solution which is tailored to your money needs."
Aberdein Considine can offer thousands of mortgage products from all major lenders. If you would like to speak to one of our Independent Financial Advisers, call 0333 0066 333 or click here.
The above is for information only and does not constitute advice. Aberdein Considine is authorised and regulated by The Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.