A recent joint study by the University of Nottingham and Habito found that most mortgage contracts require a Year 13 reading comprehension level to understand, which often inhibits borrowers’ ability to understand their mortgages. This helps stop borrowers from realizing that the wrong mortgage can charge far more per pound borrowed than even the most voracious of payday lenders — sometimes doubling the price paid for a house. Savvy borrowers should focus on long term lending costs rather than monthly bills, overpay when possible and switch mortgages when terms end.
- Payday loan officers are prohibited from charging you double in interest rates, but mortgage brokers have the ability to do this.
- A large hurdle when it comes to obtaining a new mortgage is understanding the language that is used within the contracts.
- A shorter mortgage contract may mean a bigger routine cost, but it also means that you will rid yourself of the debt much sooner.
“In fact, the wrong mortgage can mean you pay back more than DOUBLE what you borrow – that’s hundreds of thousands going in interest charges.”