Despite the fact mortgage rates are continuing to fall, homeowners need to remain on their guard, uSwitch.com has warned.
According to the price comparison website, even though borrowers are likely to be relieved by the news rates are dropping, some deals will still come with hefty fees.
Personal finance expert from the company Michael Ossei pointed to some of the most competitive offerings recently launched by Chelsea Building Society and First Direct .
With the former, he noted that while its three-year fixed rate mortgage offers one of the cheapest deals on the market at 1.99 per cent, borrowers will need to have a 40 per cent deposit or equity and be able to pay an arrangement fee of £1,545.
“Consumers remain wary about the future and many will feel they have no option but to pay a hefty fee so they can enjoy future peace of mind,” he remarked.
This comes after a credit conditions survey carried out by the Bank of England forecast mortgage rates will fall even further in the coming months due to increased competition.
