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'Plan to get best deals' when borrowing, says CML

The Council of Mortgage Lenders (CML) has stated that although the Bank of England elected to hold interest rates at 5.5 per cent last week, consumers should not become complacent with their finances.

According to the CML, borrowers ought to plan ahead in order to get the best deals from their mortgages and in all aspects of their future financial dealings, particularly as the long-term forecast for interest rates remains uncertain.

CML director general Michael Coogan said that overall planning was the key for consumers, particularly as more householders are taking out personal loans in order to help out with the rising cost of running a home.

"For most people, the scale of the increase will be manageable. But it makes sense for borrowers whose fixed-rates will end soon to start planning ahead now and to recognise that their monthly costs will be higher in the future," Mr Coogan said.

The CML has said that borrowers who have secured loans and fixed-rate deals that are due to come to an end in the next year should look to new mortgages, estimating that 1.5 million borrowers took out such deals in 2006 and that most of these would have been fixed for two years.

Click here to see how much could borrow with a home loan from Lombard Direct.

14/06/2007 17:14:40

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