A new loan company launched this week promises to offer an alternative to high street banks.
But it is really a high street banking giant disguised by a new name. And if you take up its offer, you could end up losing your home.
Fair & Square claims it "has been launched in response to customers looking for an alternative as banks increase fees". But it is owned by Barclays Bank.
Worse, it's flogging secured loans - which carry the risk you could lose your home if you get in financial difficulty.
The lender says it is offering low rate. At a typical 6.9 per cent, it certainly seems competitive.
But anyone taking out a secured loan needs their head examined.
Especially as there are unsecured deals - which carry no risk of losing your home - at cheaper rates. For example, Moneyback Bank - itself a front for the Alliance & Leicester - charges a typical rate of just 6.7 per cent.
Julia Harris, of Moneyfacts, says: "With more competitive rates on unsecured personal loans and lower rates on mortgages, it is difficult to see who will get a good deal from a secured loan." Indeed, Barclays currently advertises its own unsecured loans at 7.4 per cent, promising "if you find a better deal elsewhere, we'll pay you the difference".
There are better deals elsewhere - but not at Barclays' new shady secured loan offering.
News Source:
http://www.mirror.co.uk/
|
