Consumers warned of low-rate seduction on mortgages for professionals
Consumers have been given a timely warning about selecting mortgages on the basis of seductive low interest rates.
Research by moneysupermarket.com has shown that a massive 74 per cent of those surveyed choose a mortgage product without paying any attention to the potential overall cost.
The implication of this trend for high-earning professionals could be even more significant, with high-priced properties' higher payments on interest making low rates a particular lure.
Head of mortgages at moneysupermarket.com, Louise Cuming, explained that the revelation was a "grave concern".
She said: "With fees having shot up over the past 12 months, people need to factor in the true cost of a mortgage rather than be tempted by the rate."
"It's almost natural instinct for borrowers to believe a lower interest rate is better, but that isn't always the case," she added.
With only 21 per cent of borrowers staying with their current provider when choosing their mortgage, seeking advice from a mortgage broker - particularly for professionals - is likely to be a wise decision.
Mortgage approvals fell to 88,000 in October, the lowest level since 2005, a statement from the Bank of England confirms.
Research by moneysupermarket.com has shown that a massive 74 per cent of those surveyed choose a mortgage product without paying any attention to the potential overall cost.
The implication of this trend for high-earning professionals could be even more significant, with high-priced properties' higher payments on interest making low rates a particular lure.
Head of mortgages at moneysupermarket.com, Louise Cuming, explained that the revelation was a "grave concern".
She said: "With fees having shot up over the past 12 months, people need to factor in the true cost of a mortgage rather than be tempted by the rate."
"It's almost natural instinct for borrowers to believe a lower interest rate is better, but that isn't always the case," she added.
With only 21 per cent of borrowers staying with their current provider when choosing their mortgage, seeking advice from a mortgage broker - particularly for professionals - is likely to be a wise decision.
Mortgage approvals fell to 88,000 in October, the lowest level since 2005, a statement from the Bank of England confirms.
