Atom Bank hit the headlines last week when it unveiled the cheapest-ever five-year mortgage in the UK.
With a rate of just 1.29% and a £900 fee, the fixed-rate deal was notably cheaper than any similar product on the market.
Sadly for those hoping to take advantage, the deal was pulled yesterday – just one week after launching.
And it’s not the only financial product offer that’s had the ‘blink-and-you-miss-it’ treatment in recent times.
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The new normal?
Tesco’s 3% current account was pulled within days of it promising the rate would be fixed until April 2019.
It’s only recently returned, with a couple of caveats thrown in to stem the flow of applicants.
Savings account rates are sometimes only available for a limited period too.
In any case, the trend for financial products seems to be moving towards ‘flash sales’, which are a big hit with clothing retailers and holiday companies.
What are flash sales?
Flash sales offer goods at vastly reduced price and disappear after a very short period of time.
Budget airlines regularly run them to boost ticket sales or generate interest in a new flight route.
And you can see the appeal to financial companies.
By offering a great rate for a short period, a bank can garner great publicity while limiting the total number of customers they take on board.
Andrew Montlake, director at mortgage broker Coreco, told the Financial Times:
“When you’re seeing deals like that — clearly designed to disrupt the market and attract attention — they don’t last long.”
The presents a new challenge for customers.
If a top mortgage can be launched and subsequently pulled in the space of a week, it means you effectively need to check for deals on an almost daily basis to avoid losing out.
That's obviously not very practical. So if you want to make life easier and still stay up to speed with the top offers, why not try signing up to our daily newsletter?
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