Costs of mortgage security ‘getting excessive’

The costs of gaining some measure of financial security by taking on a fixed-rate mortgage deal are becoming excessive, according to one expert.

Francis Ghiloni from mform maintains that the fixed-rate deals currently are the market are being offered at uncompetitive prices to borrowers desperate for a good deal.

In fact, the true costs of a two-year fixed-rate mortgage arrangement in the UK put these deals 45th or lower in a list of ‘best buys’, mform reports.

Given the extent of the country’s debt management problems, millions of homeowners are keen to fix their mortgage costs but many are finding it impossible to get good value.

“The cost of security appears to be excessive and fixed rates are now uncompetitive across the board for most product areas,” said Ms Ghiloni.

According to the Council of Mortgage Lenders, there are almost 1.4 million consumers whose current mortgage arrangement is set to expire over the course of this year.

By Giles Stevenson