Mortgage comparisons 'must not neglect amounts left owing'

Date:Tuesday 10th March 2009
Author: Max Freedman

Consumers comparing mortgage products must not forget to consider the amount that would be left owing, it has been stated.

Price comparison website warned homeowners not to look solely at how much will be paid each month.

Head of mortgages Louise Cuming said that people seeking a deal need to look at rates, fees and the amount that would be left owed.

"For example, on a two-year mortgage, you need to know how much you will have paid by the end of the two years (including paying the fee) and how much will remain outstanding on the mortgage," she explained.

Ms Cuming added that there is currently a "mortgage minefield" due to variations and confusion in the market.

The website also noted that mortgage deals with higher rates could turn out to be better deals depending on the value of the mortgage and the fees.

Earlier this month, moneysupermarket predicted mortgages to drop by 30 per cent this year compared to last and cited banks' unwillingness to lend along with decreased consumer confidence.

It also pointed out the effect of job insecurity on people's keenness to enter the housing market or move.