Martin Lewis issues urgent warning over ‘hidden fees’ mortgage mistake which could cost you thousands
MARTIN Lewis has issued an urgent warning over “hidden fees” on a mortgage mistake which could cost you thousands.
For many people who are on a fixed rate it’s important to check when it is coming to an end.
With the cost of living stresses on the rise, the last thing you want to be doing is checking rates and seeing costs are going up.
However, avoiding the task could see you lumbered with more fees and thousands of pounds added to your bills.
The money saving expert has said anyone who has a fixed rate that’s about to come to an end, and they want to switch, should get onto their current lender.
He said you should be checking what they can offer you before jumping to another one.
You can then use comparison sites to see what is available elsewhere.
It comes as he revealed charges to switch could be in the thousands.
On his ITV show tonight, Martin said: “Get yourself onto a comparison site super quick.
“But don’t just focus on the rates.
“You have to factor in the fees, whatever fees they’re charging you for switching too, and spread that over the five years.
“Especially important on smaller mortgages where the fees have a disproportionate impact.”
There are mortgage calculators online that will let you compare the monthly cost of a mortgage based on the interest rate and any fees.
A lender or mortgage broker will be able to offer advice on the best type of mortgage deal to meet your needs.
You can shop around for the best mortgage deals rather than opting for the first bank you see.
Remember a bank or building society will only offer its own options which limits your choice.
You can also use a comparison website to find deals across the market based on your level of deposit and whether you want a fixed or variable rate.
A comparison website will usually let you search for all types of home loans such as for first-time buyers or the best buy-to-let mortgage deals.
This will give you an indication of what is on offer but you will need to do the application yourself.
Some lenders may not be on comparison websites so it is worth searching directly online as well.
Alternatively, a mortgage broker can help search the market more widely and find the most suitable deals for you.