Borrowers 'should choose their mortgage type carefully'

Borrowers in the UK have been urged by a newspaper to ensure they choose their mortgage type carefully.

In a list of tips for those considering their home loans, the Manchester Evening News has said that choosing a fixed, variable of tracker rate product relies on what may happen to interest rates in the future.

The newspaper has stated a tracker could be ideal if the Bank of England lowers its base rate, but added that a fixed deal may being "piece of mind".

It also encouraged consumers to put down a bigger deposit for their home.

"Cheaper mortgage deals are often available if you borrow a smaller proportion of the property''s value, so it pays to have a bigger deposit," the newspaper explained.

"The credit crunch means this is now more important than ever."

Recent research by NMG for the Association of Mortgage Intermediaries found that consumers could also save around £1,830 a year by seeking impartial advice on home loans.

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