{"id":10990,"date":"2018-02-06T12:15:18","date_gmt":"2018-02-06T12:15:18","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=10990"},"modified":"2018-02-06T12:15:18","modified_gmt":"2018-02-06T12:15:18","slug":"borrowers-shouldnt-take-headline-mortgage-rates-at-face-value","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/zh-hk\/2018\/02\/06\/borrowers-shouldnt-take-headline-mortgage-rates-at-face-value\/","title":{"rendered":"Borrowers shouldn\u2019t take headline mortgage rates at face-value"},"content":{"rendered":"
According to a recent Mortgage Saver Review by online mortgage broker Trussle, headline mortgage rates are misleading borrowers and could be costing them thousands of pounds.<\/strong><\/p>\n At first glance, it may seem that the lowest rates are the cheapest option, but a higher rate could actually be the better choice once you have factored in fees and incentives.<\/p>\n Mortgage deals are presented in many different ways to prospective borrowers<\/a>, but the key focus is usually the headline interest rate, as a low rate will draw a customer\u2019s attention. The problem is that the headline rate cannot tell you how truly competitive<\/a> the mortgage deal is compared to others, and the fees and charges are usually buried away in the small print.<\/p>\n Choosing the best deal can be a challenge <\/strong><\/p>\n Choosing the best mortgage deal is a stressful experience for many borrowers. Having to make sense of rates, fees and incentives can be a challenge \u2013 especially when there is no industry standard in the presentation of the facts. Of 2,000 borrowers surveyed by Trussle, fewer than 30% understood all the information presented by lenders, and 46% found the whole process confusing. 9% of borrowers even felt that the deals were hiding important information. Overall, 74% of borrowers want all fees and charges to be rolled up into an easily comparable, total true cost for the period of the deal.<\/p>\n Helping borrowers make the right choice<\/strong><\/p>\n Trussle took the information of the ten lowest two-year fixed rate deals<\/a> available on the market from 72 lenders (with a loan-to-value of 60%), and ranked them based on their initial rate.<\/p>\n