Latest Debt News
Paying too much for mortgages
14/03/2006 17:00:00
Almost one million mortgage borrowers across the UK could be paying some £1,000 too much every year in mortgage repayments.
This is because over 950,000 people signed up for fixed-rate mortgage products in 2004, when interest rates were soaring.
Sean Gardner, chief executive at MoneyExpert, said: "Savvy homeowners can stay ahead of the game if they do a bit of homework and review the market."
He went on to say that for those overpaying now, "the price doing nothing can be steep".
Those who will suffer the most are the mortgage holders who don't switch to a cheaper deal when their initial fixed-rate period expires – which could leave them paying over six per cent interest and adding to their debt.
"At the very least they should look to move their fixed-rate deal to another fixed-rate and should certainly not become stuck on their lender's standard variable rate – even if this means negotiating a new rate with the same lender," concluded Mr Gardner.
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