Mortgage seekers told not to expect any perks

Posted 2008-05-14

Mortgage providers are unlikely to offer any perks or incentives in order to win business, an industry figure has claimed.

According to Darren Cook, head of mortgages at Moneyfacts, lenders have rarely offered add-ons to their mortgage products and are less likely to do so in the current financial environment.

He stressed that buyers should focus on how suitable the product on offer to them is, rather than considering a deal based on the additional benefits they could get.

"Within the mortgage market [perks] are few and far between. If you look at the mortgage in its entirety, you need to look at whether that product is suitable for the individual," Mr Cook said.

He went on to add that the market situation had reversed over the last six months, with consumers now having to find a bank that is willing to lend to them whereas previously banks went out to look for business.

Last week, Lloyds TSB launched its Airmiles mortgage, a product which gives customers the ability to earn 6,000 airmiles up front and 50 for every monthly payment they make.

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