Homebuyers urged to assess “real” costs of mortgage deals

Would-be homebuyers and people looking to remortgage in the UK have been urged to assess all aspects of a home loan deal before committing to a particular arrangement.

A recent study by Moneysupermarket.com concludes that almost three-quarters of all homeowners across the country base their mortgage deal decisions solely on interest rates and this could be adding to their difficulty in becoming debt free.

The financial comparison firm reports that 40 per cent of homeowners worry about the fees associated with their mortgage deal, while less than a quarter concern themselves with their loan provider’s standard of customer service.

“It’s of grave concern that homeowners are placing most importance on low interest rates,” said Louise Cuming, head of mortgages at Moneysupermarket.com.

“With fees having shot up over the past 12 months, people need to factor in the true cost of a mortgage rather than be tempted by the rate,” she added.

Earlier this year, the Consumer Credit Counselling Service warned that British homeowners would be struggling with debt management throughout 2007.