Beware the hidden costs of your mortgage

June 17, 2016 by Brendan

Advice & Tips

With so many mortgages, deals and offers available, choosing the most cost effective product can be a nightmare. Lenders offer free valuations, low interest rates, cash back and free legal fees, but what seems to be a cheap deal and a good offer may turn out to be very expensive.

When selecting a mortgage deal, there are hidden fees that can add thousands to the cost of a mortgage. It is possible to obtain a low rate deal from multiple lenders. However, one may offer cash back but charge more for a valuation, which won’t have any value for you as a buyer. Another lender may offer a lower amount of cash back but offer a free valuation. There are also product fees to factor into a calculation, which can make the process even more confusing.

Mortgage adviser https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Wilson from 360 Mortgages, says:

“This type of comparison really highlights the need to think about extra costs- something that a straightforward online search for the best mortgage rate won’t take into account.”

He added that buyers would need to decide whether they wanted cheaper upfront costs or to pay less over the lifetime of the mortgage. Wilson stated that the hidden charges are often in the small print and that buyers may not always be aware of the true cost of a product.

Mortgage advisers are required to undertake CeMAP training so that they are able to help buyers to select the most appropriate product for their circumstances.