Abacus Daily Debt News

Mortgage market ’seductive’ for customers

The deals currently available on the mortgage market could potentially tempt customers into opting for one that is not necessarily right for them, it has been suggested - indicating that without shopping around for relevant products people risk sliding into unnecessary debt.

According to Hannah-Mercedes Skenfield of moneysupermarket.com, there appears to be a trend in the sector towards targeting "for marketing impact", rather than the benefit of those taking out loans.

She went on to say that "the market is cluttered with products that look great in the branch window, but are not adding value to consumers".

Ms Skenfield’s comments follow the release of a 1.98 per cent tracker and a 2.99 per cent two-year fixed rate mortgage by Woolwich and Halifax respectively.

Earlier in the week, loan rates were called "obscene" by Paul Holmes of Firstrung, a company that specialises in deals for first-time buyers, who noted that banks are often unwilling to lend unless it is completely in their favour.

By Sarah Adie