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Free Ipads As Mortgage War Escalates

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Lloyds is offering home buyers free iPad mini tablets in an intensifying mortgage war between major banks.

The £349 internet-connected Apple iPads, on offer for two months, raise the stakes in the contest for customers.

Rival lenders are promising to pay council tax bills or giving cash rebates.

However, mortgage experts are warning borrowers not to choose a loan purely on the basis of a free gift.

Lloyds says the iPads will help customers who fear being cut off from the internet while they move house.

But Pat Bunton, director of mortgage brokers London & Country, said: "Consumers shouldn't get seduced by gimmicks.

"It's more important to get the best deal and buy the iPad out of the savings from that."

Another spur has been the imposition of new rules forcing lenders to check more carefully whether applicants can afford to borrow.

Providers are having to work hard to woo those home buyers who pass the stricter tests.

The Leeds and Yorkshire building societies are presenting them with £1,000 cash rebates, while TSB is giving the borrower £2,500 towards the council tax bill.

Cumberland Building Society has a cash-back offer worth 4% of the mortgage advance.

At the same time, big names including Barclays, Nationwide and Halifax have reduced their fixed-rate mortgage deals.

Houses The housing market revival has led to greater competition for mortgages

While commentators have been debating about next year's likely increase in the Bank of England base rate, average fixed rates have been falling.

Financial information group Moneyfacts says the average two-year deal is down 0.3 percentage points to 3.16% over the last month for a borrower needing a mortgage for 75% of the property value. Five-year fixed rates have moved lower as well.

The Lloyds iPad offer might revive concerns about a return to the frenzied property market that preceded the financial crisis.

In 2004, West Bromwich Building Society's Brum Brum mortgage offered borrowers a brand new Rover 25 car.

Soon afterwards, Scarborough Building Society offered a free plasma TV to drum up business.

http://www.bbc.co.uk/news/business-29438692

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Ties in with the lower mortgage approvals.

The major lenders are chasing a smaller market than 6 months ago, expect the return of 100% mortgage by the end of the year.

Last time they run out of borrowers (2004 - 2007) they reduced lending standards to keep bonuses rolling in and bank profits up. Dont; expect different this time.

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Can any one tell me, what happens if you have a mortgage in principal, get the valuation report done etc, but before you exchange contracts on the property mortgage interest falls?

Can you go back to the lender and ask for the new rate, or do you have to reapply and get valuation done again...?

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Mortgage + Ipodpad. Genius idea from the boomer think-tank.

At least they appear to be running out of applicants now, having to resort to such ridic incentives.

ajkz1h.jpg

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something wrong with the post mechanism today.

imagine a BTC transaction doing the same thing.

Edited by Bloo Loo

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Can any one tell me, what happens if you have a mortgage in principal, get the valuation report done etc, but before you exchange contracts on the property mortgage interest falls?

Can you go back to the lender and ask for the new rate, or do you have to reapply and get valuation done again...?

More importantly, do you still get the free iPad?

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More importantly, do you still get the free iPad?

And what happens if a new iPad version comes out in the meantime when you get a new mortgage?

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So how much does this free iPad cost? 24 month 4g contract?

From today they can only (mostly) loan out 4.5x max so presumably they've done a deal with apple where the 4g contract wil only cost you an additional 1-3x income.

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internet-connected Apple iPads

the small print in the monthly contract will no doubt make these less than completely free

Don't worry the next logical step is for you to get free internet access in your house with your mortgage company. I'm sure it would be quite easy to say get a tie in deal with BT, that way you get free football as well.....

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Don't worry the next logical step is for you to get free internet access in your house with your mortgage company. I'm sure it would be quite easy to say get a tie in deal with BT, that way you get free football as well.....

Would HPC be blocked?

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I think someone at the bank took the HPC meme; that people who can't afford to get on the ladder, are the ones that bought an ipad.

So this week at the meeting at the bank, they had brainstorming session- Let's give them a free ipad - problem solved! Bonuses all round!

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