Ethically-sound community bank Moneyway ( http://www.moneyway.co.uk ) has warned panicking people not to snap up ‘too good to be true’ mortgage deals out of fear that it is the only way they can own a property.
Moneyway issued the warning as HSBC reduced its headline interest rates and offered a number of products aimed at attracting customers frightened that the credit crunch could destroy their dreams of owning their own home.
Sales and marketing director for Moneyway, Owen Woodley, said: “The HSBC campaign to attract concerned would-be buyers has achieved precisely what its marketing team set out to – everyone is buzzing about the offers, but ultimately it does rather appear more people will be disappointed than delighted.
“HSBC capitalised on the uncertain current financial climate at a time when credit cards were being withdrawn and rival banks hiking interest rates and cutting products.
“But HSBC can pick and choose whom they offer a mortgage to and they are no doubt being inundated with applications now, which they cannot convert. The ‘lifeline’
Mr Woodley reiterated his previous advice to buyers-to-be, advising them to exercise caution in selecting a provider.
“There is a massive amount of small print involved in many of these mortgages, those that seem too good to be true usually are. Often, people find thousands of pounds added on to the total amount with no real explanation, including huge upfront fees.
“Using a whole-market mortgage-finder, such as Moneyway’s ( http://www.moneyway.co.uk/
“It also means that Moneyway can find and match every ‘best offer’. We pride ourselves on being simple and transparent so that customers know exactly what’s what, and we are on the customers’ side, getting them value for money, which means we will go the extra mile to make their lives easier.
“Furthermore, unlike many organisations, we don’t charge a finder’s fee – which gives buyers around another £1,500 to use in their deposit,” he said.
“I would just urge people to ensure they take the time to make the right decision for what is basically the biggest purchase they will ever make,” added Mr Woodley.
