Moneyfacts comments on Apple giveaway

Moneyfacts has commented on the mortgage incentive from Scarborough.

From September 28, the Society is offering a state-of-the-art family computer package with its limited issue MortgagePlus Five-year Flexible Fixed and Five-year Flexible Base Rate Tracker mortgages.

Consumers who take out Fixed rate product at 5.29% until 29/11/10 or a tracker rate 5.29% (variable) to 29/11/06, then 5.44% (variable) to 29/11/10 are eligible to receive the computer package said to be worth 2,600.

But Moneyfacts says that if the customer borrowed 100,000 over a term of 25 years at the above interest rate, their initial monthly payments would be 601.

If on the other hand, the consumer opted for one of the top five-year fixed rate deals on the market at present their initial monthly payments, based upon the same amount and term, would be 549.

Rachel McKay from the mortgage team at Moneyfacts.co.uk says: “Whilst it is always good for competition in the market to see mortgage providers trying innovative product launches, this example shows that consumers could save themselves 3366, which would allow them to buy the Apple iMac computer package and still have money left over, or alternatively spend the money on whatever they wanted.

“However it must be remembered that the 3,366 is saved in the above example is over a five year term, not up front, so if someone is looking for a new mortgage and also wants one of the Apple computer packages, then they may see this as a good deal as they can get their hands on one without having to pay out 2,600 of their own money or taking out a personal loan to pay for it.”