Those seeking debt advice have been warned that the “true cost” of loans must be considered when taking out such a financial product.
According to Britannia Building Society, consumers need to consider valuations and arrangement fees when borrowing money to buy a property, for example, if the real long term picture is to be seen.
Tim Franklin, managing director of member business at the building society, explained that with mortgage products borrowers need to look beyond the advertised rate of repayment.
He added: “Although there are some great rates available in the market at the moment, it’s important that borrowers look at the overall package, not just the headline rate.”
Adrian Lowcock, a senior investment adviser at Bestinvest, recently noted that a growing number of borrowers are taking financially savvy steps to alleviate their debt.
In a bid to become debt free, he observed that people are taking advantage of low interest rates to reduce the equity they have on their homes.
By Jamie Price