Mortgage brokers advise leaving expensive deals early

Date:Monday 24th November 2008
Author: Susanna Kavka

Borrowers who took out costly fixed-rate deals at the credit crunch's peak in an attempt to stabilise their mortgages could be better off terminating the deals, even with the extra charges.

This is advice being given by mortgage brokers to such people, according to a report in the Times.

While leaving such deals before they finish their duration can expose borrowers to costs for remortgaging and exit fees, this still may be a better option than sticking to expensive fixed-rates that were taken out in recent months.

Les Jacobs, of mortgage broker Mortgage Monitor, told the paper: "Review - and you can yield huge savings."

In related news, many people needing to remortgage may do better to stay with their existing lender, according to one expert.

Peter O'Donovan, mortgage adviser for IFA BestInvest, told the Financial Times Adviser that the range of deals is decreasing and said that business may suffer for advisers and brokers.