Home credit seekers 'should take care when selecting their mortgage'

An expert has said that borrowers should take care when considering which mortgage deal to take out.

People seeking to compare savings on the best home credit deal available to them in the aftermath of the global economic downturn should be careful to scrutinise all aspects of the product they are considering.

That is according to Sue Anderson, head of member and external relations at the Council of Mortgage Lenders (CML), who has stated that people should take their time when assessing all the mortgage options available to them by looking into the intricate details of each prior to making a final decision.

Ms Anderson's comments come after the publication of data from HSBC last week (August 4th) which found that the cost of early redemption charges on home credit packages in the UK can vary massively on mortgages depending on the financier.

According to the study, a standard £150,000 mortgage is subject to fees ranging from £1,500 to £7,590 - a difference of more than £6,000 - between lenders, which are figures that may show the importance of taking the time to compare savings has never been higher.

Meanwhile, official statistics from the Bank of England released last month (July 29th) revealed that the number of new mortgage approvals across the country fell from 49,461 in May to 47,643 in June, a number which also represents a fall on the previous six-month average total of just over 50,000.

Following the recession, banks and building societies have attempted to attract people back to the home credit market by offering tempting rates on their mortgage ranges, but Ms Anderson believes it would be foolish not to make sure the product you choose is ideal for your personal circumstances.

"Borrowers clearly need to get a clear picture of the overall benefits and limitations of the mortgage that they might enter into. They need to look at all its features and not just the initial rate," she said.