L&C: Shop around for the best offer

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L&C: Shop around for the best offer

Tue 15th May 2007

Consumers are being encouraged to display the financial nous to shop around for the best mortgage deals on offer.

Despite praising those people who have taken out fixed-rate mortgage packages in recent times, L&C comments that many such deals may be coming to an end imminently.

With interest rates having increased a number of times during the past 12 months, including at last Thursday's Bank of England monetary policy committee, L&C advises borrowers to seek out the best possible deals.

Some of the best packages the group has identified include Halifax's two-year fixed-rate mortgage, which possesses a rate of 5.34 per cent.

L&C has identified Newcastle Building Society's two-year fixed-rate deal as being one which may cause some shock to homeowners.

After the fixed-rate period has ended, the package currently increases to Newcastle's standard variable rate of 7.34 per cent.

James Cotton, mortgage specialist at L&C, said: "The payment shock for many borrowers will be substantial when their deals come to an end and it's important that they do all they can to minimise it

"The advice is simple - see what new deal your lender is willing to offer and shop around elsewhere. Most importantly, plan ahead and don't leave it until you're already paying standard variable rate," he added.

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