Most expensive commitment requires caution

Drew Wotherspoon, of mortgage brokers John Charcol, said that there can be hidden costs in taking on a mortgage, particularly if borrowers switch providers.

“Buyers tend to get caught up in the excitement of choosing a new home and run the risk of paying the price financially by not ensuring they get the best value from their mortgage,” said Mr Wotherspoon

Although he said that there are other ways to get better value, such as bargaining over fittings and fixtures, he stressed that borrowers should look at getting the best deal out of their mortgage first.

Charges that borrowers can incur include early repayment charges (ERCs), higher lending charges and exit fees for switching borrowers.

By planning for the future and choosing the best product to suit you, Mr Wotherspoon believes that home owners can avoid getting into debt they could have avoided.