Lowest interest rate not always the best mortgage, says moneysupermarket.com

Date:Wednesday 28th April 2010
Author: Max Freedman

People must look at every aspect of a fixed-rate mortgage and not just the interest rate, a housing expert from moneysupermarket.com has recommended.

Hannah-Mercedes Skenfield, mortgages channel manager at the comparison site, made her comments after the organisation announced that fixed-rate deals have fallen to their lowest levels since April 2007 and dropped 3.36 per cent since this time last year.

But she stated: "Borrowers need to factor in any fees with the mortgage before they make any decisions as the lowest rate does not always necessarily mean the best value."

Ms Skenfield noted that it is "promising" that lenders are dropping their interest rates, but with inflation rising it means that more people need to consider whether it is the right time to fix their mortgage deal.

Financial advice website Moneyfacts.co.uk agreed with moneysupermarket.com's view that fixed-rate mortgages are falling, putting the trend down to lenders trying to be more competitive.