First time buyers 'could save on fixed rates'

02-Jul-2007

First time buyers could save hundreds of pounds by checking the end date of their fixed-rate mortgage more closely, it has been advised.

Mortgage advisor Charcol has said that borrowers are losing out by as much as £968 on a £200,000 mortgage because they are not checking the end date in terms of months as well as years.

"The end date is particularly important if borrowers have paid a premium arrangement fee in exchange for a low rate, deals that are more prevalent in today’s market […]Additionally, if you stay on the lenders reversion rate for a few months at the end of your deal you could lose several hundred pounds in interest," commented Charcol spokesperson Katie Tucker.

However, the firm has also highlighted that, in some cases, a shorter deal may nonetheless be more beneficial in terms of planning finances.

Borrowers are now prepared to take out mortgages worth up to six times their salary, it was revealed last week.

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