Simply Mortgages radio ad

J

Jimbob2

Guest
I heard an ad yesterday on the radio for the above and was surprised that the content of the ad is allowed.

They're basically encouraging people to re-finance expensive short term debt; credit cards (which they mention specifically in the ad) short term loans etc.

They encouraging people to re-package these debts on their mortgage.

That's all fine except the ad says that you will make saving on your monthly repayments or that it will save you on your monthly repayments I'm not sure of the exact quote.

Surely this is hugely mis-leading.

At no point in the ad or at the end when the speaker usually speaks at 100 miles an hour to reel off the mandatory statements, does the ad state that it may end up costing you more. Are they not obliged to do this?

Clearly re-financing high interest credit card and short term loan debt on your low interest mortgage over 30 years will reduce you monthly repayments, but it's highly likely that for most mortgage holders it would increase the long term cost and an no point save you money.

Am I wrong on any of this?
 
Clearly re-financing high interest credit card and short term loan debt on your low interest mortgage over 30 years will reduce you monthly repayments, but it's highly likely that for most mortgage holders it would increase the long term cost and an no point save you money.

Am I wrong on any of this?

What you say is correct if the refinanced loans are payed for over the 30 years however the idea would be that you would pay for the refinanced loans at lower homeloan rates but over the same timeframe as set out in the term loan agreement eg your 5 year car loan after being refinanced is still payed for over the 5 years. Remortgages are more flexible nowadays and you can mix and match portions of your overall loan with different terms to suit.
 
From the [broken link removed]:




advertisement for a debt consolidation mortgage must carry the following warning:
Warning: This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term.

Apologies for the formattting. I tried to correct it but a gremlin beat me.
 
Does that extend to radio ads? If so this ad definately does not say it.
 
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