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Cheapest mortgages revealed on website

Arifa Akbar
Thursday 21 November 2002 01:00 GMT
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People looking for a home loan could save hundreds of pounds by consulting tables launched by the financial services regulator yesterday.

The Financial Services Authority (FSA) has listed more than 1,300 mortgages on its website to allow consumers to compare the products on offer.

Mortgage lenders often advertise loans with low interest rates but borrowers also have to pay arrangement fees, the cost of rising interest rates and redemption costs if they want to move to another loan.

The tables, available at www.fsa.gov.uk/tables, compare monthly rates, valuation costs and arrangement fees, and state whether the customer might have to pay early redemption penalties. The FSA found consumers could save £230 a year by signing up to the best deal.

The service also gives details of incentives such as cashback offers and flexibility. Flexible mortgages enable consumers to make additional payments or to miss payments. The site also says whether the mortgage can be linked to a current or savings account to cut payment levels.

Beverley Brewster, of the FSA, said: "[The tables] are intended to help you shop around and make a shortlist of the best-value deals. Then you can explore the ones that interest you in greater detail directly with the provider or broker concerned."

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