Friday, 23 February 2007

Mortgage rip-off?

I got cross the other day! I saw an advert for a new mortgage product which was boasting about it being the "lowest ever" fixed rate that the Bank had ever offered - just 1.99%. What could be wrong with that?

As ever, there was a catch. First of all, the rate only lasted just over a year and then you switched on to a much higher and, in my view, not very competitive rate. But second, and more important, to qualify for the mortgage you had to pay a fee of £1,999!! Something tells me that the Bank in question were keen to lure people in by the low headline rate, but you'd need to be a genius to work out whether this product was really 'good value for money'.

So I tabled an 'Early Day Motion' about the subject here and it already has signatures from MPs of all parties. BBC Online have picked up on the story here, and I've already had an outraged letter of complaint from the Bank in question. If the result of the negative publicity is to get them to be a bit straighter with their advertising, I think it will have been worth doing.

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