Debtors must understand mortgage costs, expert says

Those considering taking out a mortgage have been advised to ensure they fully understand the offers and costs involved in applying for such loans.

Managing director of Firstrungnow Helen Adams noted that it can be difficult for potential borrowers to completely comprehend the intricacies of the mortgage industry.

“It is important that first-time buyers work with mortgage advisors who can explain it to them,” she said.

Ms Adams went on to note that, although high arrangement fees for mortgages can be off-putting for those looking to get on the property market, it is reasonable that a charge be made as mortgages are currently hard to come by, as applications do require “considerable administration”.

Her comments come in response to figures from Moneyfacts, which revealed that lenders have increased the number of short-term mortgage deals that are available, with 410 two-year deals on the market.

This compares to 257 a year ago.

By Sarah Adie