Cheap Mortgages, they're cheap and they're not...

Posted on 13 August 2008 by Drew

2 comment(s)

I am reliably informed that one of the most popular mortgage search terms for mortgages on www.google.co.uk is for cheap mortgages; after all, everyone likes a bargain.

Indeed, our own advisers are often greeted on the phone with the words "I need a cheap mortgage" - don't we all.  What a number of people do not seem to get is that cheap mortgages often mirror another connotation of the word; namely, tacky and rubbish.  The mortgages with the low, low rates are invariably the ones that tie a borrrower in for long periods after that intial cheap rate has sailed into the sunset.

Evaluating what mortgage is best for you is a process that requires so much more than finding the cheapest mortgage rate.  You must look at the upfront fees, the rate, the features that you may need, and a number of other things as well.

Cheap mortgages, like cheap lightbulbs and most other products that begin with the word cheap, are a false economy.

Categories: Mortgages, Interest rates, Fixed rate mortgages, Tracker mortgages

Daniel Barnes says:

Drew,

You are so right! When i arranged my first mortgage with the Portman i had 1.99% fixed for 2 years and then 5 years on their SVR! Poeple beware of the extended tie in and the word cheap!
Posted on 13/08/2008 14:39 by Daniel Barnes

Sandra Day says:

I was unlucky enough to fall into the cheap mortgage trap myself via google and found myself saddle with a mortgage that was anything but cheap!! It could have ended up costing a lot more than it should have - it was only because I spoke to one of your brokers I managed to halt the "cheap mortgage" before the harm was irreversible. So thanks Charcol!!!
Posted on 14/08/2008 09:08 by Sandra Day

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