Mortgage changes baffle borrowers

Changes to mortgage rates and products are baffling borrowers, according to an independent broker.

Cath Hearnden, director of My Mortgage Direct, says consumers risk making the wrong decision because of information overload.

"Since the credit crunch took hold the major lenders have made endless tweaks to their range of mortgage products - rates have gone up and down, whole ranges have been withdrawn and new ones launched," she states.

Ms Hearnden advises borrowers to seek independent advice that covers the whole of the market to ensure they find the right product for them – whether it is a fixed rate, variable or tracker mortgage.

Homeowners struggling in the current credit crunch may be able to take a break from their mortgage payments, one financial expert said recently.

Andy Pratt of Alexander Hall commented that a payment holiday can be used in a constructive way, but must be carefully considered.

He added that the option is often used by self-employed homeowners to ease their financial commitments during slow periods.

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