View more on these topics

B&B urges borrowers to look beyond lenders hype

Bradford & Bingley is urging borrowers to look beyond the hype surrounding some of the mortgage challenges promoted at the moment and to read the small print carefully.

Otherwise, it could end up costing borrowers more in the long term it says.

NatWests mortgage challenge is restricted to borrowers with Abbey, C&G, Halifax and Lloyds TSB and promises to pay a 250 if it can’t lower a borrowers new mortgage repayments.

Nationwide promises to pay a150 if it cant match or lower a borrowers new monthly payments with either Halifax, Abbey, C&G, HSBC, NatWest, Woolwich or Northern Rock.

However, lowering monthly repayments is only worthwhile if it saves the borrower money over the term of the deal.

If it doesnt, when including arrangement fee costs, exit fees, possible legal and valuation fees, then there is only one winner, and its not the borrower, B&B says.

Duncan Pownall, mortgage development manager for Bradford & Bingley, says: “On the surface challenges such as those promoted by NatWest and Nationwide appear a winning proposition, however, on closer inspection it could turn out to be a losing one for the borrower.

“Lowering monthly repayments is easy to achieve and is futile unless it ultimately saves the borrower money over the term of the deal.

“There could be a number of instances where a borrower actually ends up paying more because of the amount of fees they have to pay.

“Its imperative, therefore, that a borrower reads all the small print carefully before signing up to any new deal.”

Recommended

RICS Economic Brief reveals economy resilient

RICS Economic Brief reveals that the economy has continued to show moderate growth over the summer. Milan Khatri, chief economist at RICS, says that consumer spending has stayed flat and is likely to remain restrained as household incomes are squeezed by rising oil prices. Growth in government spending is also showing signs of tapering off […]

Buy-to-let exposed at lunch

John Heron, managing director of Paragon Mortgages, gave an insight into the latest trends at a high level lunch meeting of property professionals involved in corporate and institutional residential property investment. Heron was the major speaker at the second Quorum Lunch held at Quagalinos in London on September 23, where he outlined the issues likely […]

Batchelor scoops personality award

Guy Batchelor, sales and marketing director at Platform, scooped industry personality of the year last week at the Pink Home Loans Service Awards 2005, held for the third year running at the Birmingham Botanical Gardens. Batchelor beat off stiff competition from Linda Will, managing director of Accord Mortgages, who claimed the runner-up prize. Mehrdad Yousefi, […]

Is HBOS too conservative in its lending?

Last week senior sources at HBOS questioned whether the UK’s biggest banks’ conservative approach to lending caused directors at The Mortgage Business to walk. The past two months have seen a number of changes across the group within TMB, BM Solutions and Halifax. The bank has also made no secret of its stated aim to […]

Dubai

White paper — Dubai International Insights

Jelf Employee Benefits discusses the legislative changes in Dubai, available medical facilities and policy considerations for employers with expatriate workforces in the country. This edition will be of particular interest to global human resource directors, compensation and benefits specialists and mobility managers who have employee populations in Dubai, or are considering operating there in the near future.

Newsletter

News and expert analysis straight to your inbox

Sign up