Abacus Daily Debt News

Borrowers urged to look at “true cost” of mortgages

Borrowers have been advised to look at the "true cost" of a homeowner loan, rather than being attracted simply by "headline-grabbing" rates.

Yorkshire Building Society mortgage manager Tom Girling noted that promotions do not necessarily reflect the real expense faced by the customer.

He urged homeowners to consider charges such as valuation fees, arrangement fees and cashback offers before making a decision.

Mr Girling said that gaining an oversight of costs that will be accrued "over the course of a deal" could aid people with their debt management.

It will enable them to "see exactly how much they will be paying," he explained.

Meanwhile, borrowers have been encouraged to make overpayments on their mortgages while interest rates are low.

Peter Bolton King, chief executive of the National Association of Estate Agents, said that people may wish to take advantage of the situation before rates begin rising again.

By Jamie Price