One of the society’s latest offerings targets fans of non-league Telford United – I guess you’d have to call it a niche product. The sales hook is apparently a West Brom donation to the club of 1,000 for every 10 fans who take a mortgage with it. I say apparently because its mortgage desk didn’t know anything about it when I called. I’m surprised it’s not marketing this as the beautiful mortgage.If Telford’s expectations are realised, sales will net the club 10,000 by the end of the season. Perhaps enough to buy Peter Crouch from Liverpool but unlikely to make Jose Mourinho tremble. Unfortunately for Telford, I’ve detected a flaw in the product – it seems to be based on the assumption that football fans have the same intelligence quotient as football players. In return for their 100-equivalent donation, each of the 10 beautiful borrowers gets a two-year fixed-rate deal at 1.99%. But this leaps to base plus 1.99% for a further three years. And the largesse doesn’t come without strings. Fans are locked into the loan for the full five years and to transfer out during this closed season they’d be hit with early repayment charges scaled from 6% for the first three years to 4% during the fourth year to 2% in year five. It’s a kind of loan of two halves. Pretty much every other lender in the country offers a better package deal than this and fans would be financially better off taking any one of them, then simply writing out a personal cheque for 100 and posting it to the club. Of course financial acumen and football fervour rarely seem to make compatible bed fellows. And anyway, why would anyone ever want a mortgage, a credit card or a savings product with anything other than West Ham on it? So it may be that Telford United will, after all, get the funding the club has set its sights on. But it would have been more certain of drumming up cash if it had negotiated a fee for the publicity the product gets rather than relying on what flows from sales. So to do my bit and strengthen Telford’s chances, let me say West Bromwich is a jewel among building societies, employs really nice staff and is committed to customer service – especially to football fans. And to ensure I can still take my family to Ironbridge without fear of recrimination or reprisal, might I also confirm that the only team worth supporting in the UniBond Premier Division is Telford United. Just avoid this penalty mortgage – which could have been designed by Thierry Henri and Robert Pires.peter mounty
Pink Home Loans has made improvements to the shared ownership product, in association with Mutual One, which is funded by Ipswich.The product offers a competitive three-year discount product with no upfront fees and the arrangement fee has now been reduced to 150, which can be added to the loan on completion. Flexibility is built into […]
The Department of Trade and Industry has published statistics showing insolvencies in Q3 2005. There were 3,389 liquidations in England and Wales in Q3 of 2005 on a seasonally adjusted basis, an increase of 0.3% on the previous quarter and an increase of 14.2% on the same period a year ago.This was made up of […]
Dunfermline has added a further 56m to its mortgage book through the purchase of a portfolio of residential investment loans from Southern Pacific Mortgages Limited.
Hometrack has launched an online service allowing home owners and buyers to value a property to a level only previously available to high street mortgage lenders. The service could revolutionise the house buying process as the public can use the figures to negotiate on the price of a property or ensure an estate agent’s valuation […]
By Douglas Turnbull, Head of Chinese Equities at Neptune Following recent stimulus efforts from Beijing, Neptune’s Douglas Turnbull examines how the government’s long-term reform agenda can be balanced with supporting growth and addressing structural challenges, and the investment opportunities arising from this.Click here to read more Important information: Investment Risks Neptune funds may have a […]
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