Homeowners 'paying over £6,000 to get out'

06 August 2007
People stuck with an uncompetitive fixed-rate mortgage will have to pay in excess of £6,000 in order to escape their current deal, it has been claimed.

According to MoneyExpert.com, the cost of exercising a get-out clause is £6,370 - an amount which does drop during the first three years of ownership.

It added that recent interest rate rises from the Bank of England have left many vulnerable to being stung if they want to walk away from their existing deal.

Sean Gardner, chief executive of the company, added that people should be sure before they sign up to mortgages.

"The key thing is to make sure you read the small print when signing up to a fixed deal. Redemption charges fees vary enormously and will also depend on the term you agree to," he said.

Meanwhile, research from the Council of Mortgage Lenders shows that income multiples for first-time buyers are out their highest-ever levels.

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