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Mortgage lenders unlikely to offer perks
20 May 2008
In a shrinking mortgage market lenders are no longer likely to offer incentives to attract customers, according to an independent financial company.
Due to the global credit crunch, lenders are withdrawing many deals in order to avoid offering mortgage products to risky clients and this has seen a decline in potential perks.
Darren Cook, head of mortgages for Moneyfacts, said: "Six or seven months ago, [the market] was very competitive: the banks were going out to find business. Now, the consumers [need to] find a bank that's prepared to lend to them."
In an attempt to attract customers Lloyds TSB launched a mortgage deal which allows borrowers to earn airmiles, however, this is unlikely to persuade borrowers, according to Moneyfacts.
"If you look at the mortgage in its entirety, you need to look at whether that product is suitable for the individual," said Mr Cook.
Research by Moneyfacts revealed that the number of mortgage deals available at the end of April had almost halved from the start of 2008.
