Tuesday, May 6, 2008

It is time for serious regulations of the mortgage

Airmiles mortgage set to fly

Sean Gardner, of MoneyExpert, a comparison website, said: “Of course, nobody would advise that you selected your mortgage provider based on how many flights to Rome, cases of wine or free haircuts you’ll get. But with a rate of 5.89 per cent over three years the Airmiles mortgage is amongst the most competitive." But then again, Brown and Darling are just inept

Posted by confused76 @ 05:46 PM (587 views)
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5 thoughts on “It is time for serious regulations of the mortgage

  • Could it be that customers take the 3 year fix – build up the airmiles and when they face repossesion flee the country never to return?

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  • As long as it’s at 3am from an airport in the Outer Hebrides to Beirut …. one way.

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  • Posted elsewhere by me and spot on confused76. REGULATE the LENDERS.

    Since the lenders make money out of you having a larger loan, they are the ones that should be regulated. The criteria for taking out loans should be the same for a given same person – regardless of the year he happens to make the enquiry. In the UK, depending if it were 1988, 1994, 2000, 2007 or 2008 – the SAME person on the SAME salary would have received VASTLY different sums of money. That’s crass, and thats the issue that needs sorting.

    To offer free flights and all that crap is shameless. I can just imagine the smarmy talk delivered by the new recruit low-cost salesperson fresh out of a “training” session on the products new USPs.

    It’s a property. A home. We ought to be looking at more than just 3 years…. but hey, no commission there… so what the hell

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  • I’m sure some airmiles are a lot easier to come by if you are a bank than cash, and people often don’t cash these kind of deals in, so like a lot of these kind of hand outs they are a lot cheaper to the vendor than a straight cash discount. You’d be amazed by how many buy something for £100 and forget to mail in the £20 rebate deal…

    At the end of the day the banks don’t have much cash to play with, so they want only the best most risk free customers. Turn up with a 50% deposit, a decent stable job and borrow 3 times your salary or less and they want you, otherwise things get really expensive really quickly…

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  • @ajt: I used to work in durable retail. Redemption levels are about 30-40%
    I am amazed that Lloyds TSB do not see the negative PR in this “deal”

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