Do borrowers understand cost of mortgages?
Lenders have significantly increased the number of short-term mortgage deals on offer, while long-term mortgage deals have also increased from last year, new research has revealed.
The findings from Moneyfacts also revealed that there are 410 two-year deals, compared to just 257 a year ago.
However, commenting on the findings, Helen Adams, managing director of FirstrungNow.com, said that while short-term mortgage deals can help first-time buyers to get onto the property ladder, there were fees associated with their loan which would go up at the end of the mortgage period.
"Typically, a deal which lowers your mortgage costs at the beginning of the term can help you in the first couple of years but you should always be aware that those costs will go up at the end of the period," she added.
Such comments may convince Britons that property to rent in Eltham or elsewhere in London is a more affordable option than taking on a mortgage.
Ms Adams went on to assert that first-time buyers should work with mortgage advisors, who could help to explain all of the fees they will encounter to them.
Written by Charles Mackay
Published 2nd December, 2009
© 2009 Estates IT Limited
London Rental Property News By London Borough / Category
Latest London Property News Headlines
Streatham town centre to be improved by BID?
Major improvements could be made to Streatham town centre thanks to a new business partnership.
Read Article ... Published on 25th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Barking Splash Park opens this weekend
Barking Splash Park will be free to use this weekend (May 25th-27th) to mark its opening.
Read Article ... Published on 24th May, 2012
Southwark estates to get cheaper energy bills
Residents in Southwark can look forward to cheaper energy bills thanks to the creation of a new underground green network.
Read Article ... Published on 23rd May, 2012
Enfield £1.3bn masterplan unveiled
A masterplan has been unveiled that will see a 200-acre site in Enfield regenerated as part of a £1.3 billion plan.
Read Article ... Published on 23rd May, 2012
Londoners encouraged to grow their own fruit and veg
People in London are being encouraged to grow their own fruit and vegetables.
Read Article ... Published on 22nd May, 2012
Merton 'embraces green improvements'
Merton is now a cleaner, greener location to live in thanks to the implementation of the Wandle Valley Low Carbon Zone (LCZ).
Read Article ... Published on 22nd May, 2012
London house prices rise by 1,782% in past 35 years
London house prices have increased by 1,782 per cent in the last 35 years.
Read Article ... Published on 21st May, 2012
Poplar's Chrisp Street to get £100m regeneration
Some £100 million is to be spent regenerating the Chrisp Street area of Poplar in Tower Hamlets.
Read Article ... Published on 21st May, 2012
Borrowers need to ensure that they understand all of the costs which are associated with mortgages, it has been asserted.