Clearer mortgage advice needed

16-Nov-2005

The majority of aspiring homeowners are confused over which rates to look at when making the decision over what mortgage option to go for.

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Research by independent mortgage broker John Charcol found that many potential property buyers were unsure what all the different rates and figures meant and needed clearer mortgage advice when choosing how to finance their home.

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Almost 30 per cent did not know which rate was the most important, while 33 per cent based their decision on the annual percentage rate (APR) instead of the headline rate.

"Our research shows that many consumers could easily take a deal that is inappropriate for their circumstances," explained Ray Boulger, senior technical manager at John Charcol.

"The APR does have merit when comparing mortgage deals that have a lifetime fixed or tracker rate, but for those who manage their mortgage effectively it is largely irrelevant."

The research underlines the need for first time buyers to seek independent financial advice when purchasing a property and to consider all the different options, such as mortgages with parents or graduate mortgages.

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