Five Hidden Mortgage Catches
This may be worth fo the UK rather than for other countries, but not everyone lives in the USA, after all, and when I found this article on ThisIsMoney.co.uk, I wondered if it couldn’t be worth reading all the same, so that these things would at least kept in mind. Who knows if it might become useful later on, as a kind of comparison at the least.
Of course, it’s best to read the article I’ve just linked to, but in a nutshell, here’s a preview of what these five hidden catches are:
- Exit fees: Firms usually ask for exit fees when customers switch to another lender, or even pay off their loan. Be aware tha tcertain firms may ask way more than what is the traditional fee; make sure to check what those fees could be, and don’t hesitate t ocomplain if they really seem to high.
- Standard variable rate: The standard variable rate is the lender’s fluctuating rate of mortgage borrowing. It is the default mortgage rate people are put onto when a deal expires, and it is advised, in such cases, to remortgage as soon as possible to avoid paying off more than what should be.
- Portability: Especially in the case of long-term deals, make sure that they are indeed protable, i ncase you’d happen to change home later on.
- Higher lending charge: Beware of affordability measures: always read the fine print, so that the good deal don’t turn into extras piling upon extras.
- Early redemtion charges: Most fixed rate or tracker deals involve an early repayment charge, but some home loans have much higher charges than others. Therefore, you should always check the early redemption charges, and work out what the cost of remortgaging would be
September 16, 2006 | Filed Under Mortgage Updates