Homeowners in search of an attractive fixed rate deal even after the interest rate hike a few weeks ago are finding them. Many lenders are offering deals with low fixed rates at three, five, and ten year terms. They are deals which make it possible for homeowners to save money each month compared with their current deal. But, what about the cost involved with paying off a mortgage loan early? Experts advise careful consideration and detailed account of all expenses before committing to anything.

Early exit fees are part of the mortgage lending process when obtaining a new deal with possibly a new lender. The new deal could be bright and shiny from the outside, but that is before truly knowing the cost to exit the current mortgage deal. Homeowners are being cautioned constantly, but especially now with all the activity in the market.

Ray Boulger of John Charcol brokers commented on the need to watch the possible expense with early payoff, saying:  “It’s part of the market that is often overlooked. Most people are so rate focused they don’t tend to think about an early repayment charge. The security of knowing what rate you will pay is worth it, but it’s important to know you can get out of the mortgage if you need to.”

Early repayment fees are only one detail of a remortgage deal which should be researched and then checked again. Before finalizing any deal, experts urge homeowners to calculate and then recalculate their figures in order to truly understand the financial consequences of a new deal. A remortgage is a powerful tool to potentially saving money when all the steps are covered.