The January sales attract many people who are hoping to find a bargain, and banks and building societies are no different. However, according to a report in The Sunday Times, it may well be worth closely analysing these deals to see if they really are value for money.
One of the major offences is hiding market leading products and offering special offers.
For example, HSBC is offering a two-year discounted mortgage in its sale. This works out at 2.29 per cent ? 1.65 per cent below its standard variable rate (SVR) of 3.94 per cent ? but as it is linked to the SVR, HSBC has the freedom to up the rate whenever it wants.
David Black of Defaqto, the analyst, said: ?It?s important that consumers don?t get sucked in by clever marketing, as often non-sale deals will provide better value.?
Another example is the Leeds Building Society, which offers customers savings of up to ?1,135 in its mortgage sale. This is a three-year fixed deal and the customer is not required to pay the ?800 completion fee. The standard valuation fee of ?335 is also waived. However, it does require a deposit of 40 per cent and offers a high interest rate of 4.99 per cent. It will also cost the customer ?199 in the fees.
On reflection, the best buy deals offered outside of the sale deals are relatively better. ICICI, the Indian bank, is offering 4.7 per cent to savers on a three-year deal. This seems better than the 4.25 per cent savings option from HSBC.
