- Wednesday, 2 December 2009Borrowers have been warned to fully understand the costs involved in their adopted mortgage scheme.
Firstrungnow.com has suggested that people looking into short-term mortgages in order to get on the property ladder should not overlook the fact that prices go up at the end of the mortgage period.
Unawareness of such costs could result in some consumers getting into unsolvable financial difficulty and coming to rely on solutions such as
individual voluntary agreements (IVAs).
Helen Adams, managing director of Firstrungnow.com, said that while it was difficult for people to be privy to all the costs involved in mortgages, it was up to them to ensure they found out.
She commented: "I think it is quite difficult for people to be aware of these offers or to even fully understand them. That's why we think it is important that first time buyers work with mortgage advisors who can explain it to them."
According to figures from Moneyfacts, there has been an increase in the number of short-term mortgages available. There are now 410 two-year deals on the market compared to 257 a year ago.
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