The Sunday Times - The race to sign up for the last of the cheap mortgage deals
Kate Palmer at The Sunday Times reports homeowners fearful that cheap mortgage deals are disappearing are scrambling to get new loans and paying hefty exit penalties to secure them.
Trinty Financial explained one of our clients paid £12,000 in exit fees to get out of his 2.59 per cent ten-year fix three years early and secure a five-year fix at 1.14 per cent.
The switch will not save him money but was a way of borrowing an extra £50,000 for home improvements after his existing lender refused to increase his mortgage. There was a 6 per cent charge on a £200,000 loan to make the move to the new lender.
“A lot of people are asking if they should be swapping deals, but the difficulty is that the early repayment charges are usually really high,” said Aaron Strutt from the mortgage broker Trinity Financial to The Sunday Times: “Many borrowers are biting the bullet and paying them amid the threat of rate rises.”