independent insurance for career people
Mortgage Industry News
← Back
Check for underhand staircasing mortgage deals
Date: Mon, 07 Nov 2005
First time buyers are being warned to avoid underhand staircasing mortgage deals as evidence of dirty tricks emerges in the industry.
Bradford & Bingley believes that the increasing price war in the mortgage sector could be misleading customers and actually increasing their mortgage commitments rather than lowering them.
Many homeowners, especially those in shared-ownership accommodation, are keen to increase the proportion of their home they own – a process known as "staircasing" – however, some high-street lenders could be unfairly charging customers to switch to a better deal.
A number of banks are now offering to price match other lenders' deals in order to increase their customer base but Bradford & Bingley are encouraging customers to check the small print on any new deal.
"On the surface challenges such as those promoted by NatWest and Nationwide appear a winning proposition, however, on closer inspection it could turn out to be a losing one for the borrower," said Duncan Pownall, mortgage development manager for Bradford & Bingley.
He added: "There could be a number of instances where a borrower actually ends up paying more because of the amount of fees they have to pay. It’s imperative, therefore, that a borrower reads all the small print carefully before signing up to any new deal."
Staircasing Mortgages from Endsleigh Financial
If you are currently interested in arranging a staircasing mortgage or simply want to discuss your situation further please click here and fill in our short mortgage quote form.
© 1998-2005 DeHavilland Information Services plc. All rights reserved.
Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.