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Secretive Loan Deals

Written By On 19/11/2013

It seems that some UK lenders are able to offer cheaper mortgage loan deals to certain preferred clients as opposed to the rates that their company advertise.

First Direct internet banking and HSBC Bank plc whom they are a division of are two such examples. One would presume that they display online all their loan offers, but apparently this is not the case, at least for some of their ongoing customers.

If they take the time to enquire, they are likely to find some of the best kept secrets, appertaining to fees, behind closed doors. There are reports of lower rates plus lower arrangement fees for the privileged few that have amounted to at least five hundred pounds in savings.

Although HSBC's two year fixed deal of 1.49% is better than most on offer, they have still been known to lower their £1,999 fee that accompanies it by a minimum of one hundred pounds. Other arrangement fees on offer for other loan deals have been lowered by as much as three hundred pounds. Plus other offers have had their rates slashed by a minimum of 0.1%.

James Thorpe, the bank's Head of Retail Banking Media Relations feels it is justified as every applicant is different and has their own unique criteria. He says

The customer's creditworthiness and situation, the mortgage they are interested in, their loan to value and the size of the loan will all play a part in our ability to offer a reduction.

This is now causing some concern for potential borrowers as nobody wants to miss out on the best possible deal they can get. The ironic thing is that politicians along with financial regulatory agencies have been calling out for transparency in the loans market, yet this just continues to contradict.