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Britannic helps clients unmask mortgage horror

To mark Halloween, lender Britannic Money is urging borrowers to take steps to avoid some of the horror stories associated with mortgages.

It says people face a trick or treat dilemma with mortgages as there are a frighteningly high number of deals available so choosing the right one can be difficult.

Britannic has listed six questions that brokers should advise their clients to ask, based on the letters that spell out “horror.”

Under H, it says look at the headline rate and long-term value to calculate if the mortgage is good in the long term once the initial discount has run out.

Under O is overhanging early repayment charges, how onerous they are and whether they last for a lengthy period after an initial rate. For the first R, it says watch out for rigid payment structures that do not give access to overpayments or payment holidays.

Under the second R are restrictions on borrowing back of overpayments. The second O stands for onerous insurances where lenders force borrowers to take our their policies that might not be competitive.

The final R refers to recalculation of interest and whether this is on a daily basis.

Head of marketing Rachel Ramsden says: “With interest rates at an alltime low and thousands of mortgages to choose from, you could easily mistak-enly believe that all mortgages offer a good deal.”

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