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If you are a borrower who needs to self certify their income, leaving everything in the hands of a bank might be a big mistake – specialist borrowers need specialist financial advisers to give them a helping hand.

But banks are doing their upmost to snag customers by offering packages of financial products like current accounts, loans and mortgages.

David Black, banking specialist at Defaqto says: "We've already seen banks focussing their unsecured lending on their existing customers but now there is the beginning of a trend to target mortgage lending in the same way with a series of special mortgage offers available exclusively to current account customers.

"Banks see the current account as the main relationship builder with the customer and it also enables them to have a much better understanding of the financial capabilities of each customer. Banks are striving to become the one-stop shop for all the personal finance needs of their customers."

Banks try and lure account holders with limited edition or exclusive mortgages – but a mortgage with a current account might not be the right deal for you, even if it looks cheaper with a preferential standard variable rate, for example. If you need to self certify your income you need a specialist mortgage to do the job properly. You also need a specialist mortgage adviser who will help you find the right deal, not just a deal with a gimmick.

Black adds: "Just because the rate offered by the special deal is slightly below the standard rate available to non- current account customers, it does not necessarily mean that you cannot get a better deal elsewhere. People should shop around for the best deals as loyalty does not necessarily pay."

SOURCE: Defaqto, 05/01/10

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