Mortgage lenders urged to clarify interest rates

27-Nov-2006

First time buyers may be interested to hear that calls are being made for UK lenders to clarify their position over interest rates and ensure greater transparency for borrowers.

Some experts are concerned that many lenders have failed to explain their intentions for standard variable rate (SVR) products, leaving customers - such as first time buyers - unsure as to the future of their mortgages.

Louise Cuming, head of mortgages at Moneysupermarket.com, describes this as a "dreadful approach to customer care", arguing that more should be done to improve transparency.

According to Ms Cuming only 61 out of 112 lenders have announced SVR product plans to date, effectively leaving many borrowers in "no-man's-land".

"More than two weeks after the MPC [monetary policy committee] rate rose to five per cent nearly half the market's providers have yet to inform customers of their fate," she explains.

"Consequently, with millions of people not able to plan their finances going into the New Year, Christmas could be a time of anxiety rather than cheer for many."

The Centre for Economics and Business Research recently suggested that higher interest rates will act as a limiting factor in cutting back house price inflation, which may come as welcome news for first time buyers.

To find out which is the best first time buyer for your situation, contact a good mortgage broker.

First time buyers dismayed by another increase in property prices should seek out those companies setting up to help them find bargains.

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