The number of mortgages and regular savings accounts only offered to customers who have another product with the same provider has leapt dramatically since the beginning of 2010, says Which?
The bid to tie customers in is discouraging consumers from shopping around to get the best deals, finds new research from Which? Money.
The consumer magazine says often tied products offer poor value-for-money, as the products they are tied to may not be the best available.
For example, First Direct is currently offering one of the cheapest five-year fixed-rate mortgages for Loan-To-Values of 65% or less of the property’s value, but customers also need to take out a First Direct current account, which pays no credit interest.
Which? chief executive Peter Vicary-Smith says: “If you’re considering taking out a tied product, look at the whole package to work out whether it offers a good deal.”
