Landlords, don’t be fooled by low rates.
The Financial Conduct Authority’s report into the mortgage market found that around 34% of borrowers were unable to see that they were eligible for a cheaper deal.
On average, these consumers paid around £550 per year more over the introductory period compared to the cheaper product. But this poses a question: is the cheapest mortgage always the right mortgage?
With price comparison websites now well-established, some consumers have started to make important financial decisions based solely on price.
But while a decision between two retailers selling the same model of toaster, for example, is simple, such choices are far more difficult when it comes to the world of financial products. The cheapest insurance deals do not necessarily offer the best levels of cover, and the lowest mortgage rates may not be the best deal for a borrower’s circumstances
The mortgage market is both complex and diverse. While high street lenders may have the largest profiles, there is a raft of small and specialist lenders fighting for business.