Homeowners and landlords ditch mortgages in gamble it saves them thousands

The Telegraph have run an article on the threat of landlords leaving the market.

It can be seen here (subscription might be required) stating ‘Homeowners are paying thousands of pounds in penalties to end their current mortgage and lock in a new deal before interest rates rise even further.

Angus Stewart, of broker Property Master, said: “Even before last week’s Bank Rate rise the typical landlord was paying up to £133 per month more for a mortgage.  

“With more significant rate rises on the horizon, for some landlords it may well be worth paying an early redemption fee now to exit their current fixed rate if it is already near the end and lock in a deal before rates go up again.”

However despite rising interest rates, paying early repayment charges can sometimes leave borrowers out of pocket. Mr Merritt said: “It’s important for homeowners to factor in early repayment charges alongside any new product fees when considering how to get the best value for money.”

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