Those in debt ‘should shop around’
Consumers are being urged to shop around for better mortgage rates as lenders begin using customer-profiling techniques to offer risky customers a worse deal.
Young people and low-income individuals are deemed to be the highest risk and typically offered variable rate deals around 7.5 per cent, said mform.co.uk.
Older and wealthier customers are likely to get offered a more competitive rate.
Around 116,000 people will be coming to the end of a mortgage agreement each month this year and many of these will be offered an uncompetitive rate, which is why mfoem.co.uk is advising consumers to shop around for a better package.
Marketing and business development director for mform.co.uk Francis Ghiloni said: “The credit crunch has made mortgage availability the major issue and lenders are increasingly taking a tough line with existing borrowers.
“However they can still remortgage elsewhere and should.”
Property website Rightmove has released its May edition of the UK house price index and it claims that the average house price for a newly marketed property is now £242,500, a record high level.
