Mortgage perks 'are relatively unimportant'

14-May-2008

Perks such as Lloyds TSB's Airmiles should not be viewed as a major factor when customers are deciding which mortgage to choose, which may be of note to first-time buyers.

Moneyfacts has pointed out that, while such perks undoubtedly add "a little more value to the package", borrowers should focus on the major factors of a property such as the interest and loan-to-value.

This comes after Lloyds TSB launched their Airmiles mortgage, which allows borrowers to earn 6,000 Airmiles upfront, plus 50 Airmiles with each monthly repayment.

Commenting on the issue, Darren Cook, head of mortgages for Moneyfacts, said: "Remember that a mortgage is a massive investment, and a massive decision for someone to make. So if you're going to remortgage or take on a new mortgage, [such perks] might not be high on your priority list."

He added that the most important thing to be considered when choosing a mortgage deal is "whether that product is suitable for the individual".

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