Buyers should shop around for finance

Buyers looking for the best deal on a mortgage are being urged to shop around by Lloyds TSB.

The high-street bank has said that the perception of the media that there is a mortgage drought is an over-statement and added there is still plenty of choice for borrowers willing to look.

Stephen Noakes, C&G marketing director, said: "In a climate of low confidence, homeowners are less willing to shop around for a new mortgage."

"There is no denying there are fewer deals available, but the perception is worse than it is," he added.

Research by Cheltenham & Gloucester found that more than a third of homeowners would not approach another lender when remortgaging for fear of having their application rejected.

And 30 per cent of respondents said they would prefer to pay a higher rate with their current lender than be rejected by a competitor.

The announcement comes after research carried out by consumer group Which? that showed quotes on price comparison site vary wildly.

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