Overpayment Calculator Adverts - Tinfoil Hat time?

[Douglas Arfempty]

Evening All,

No expert whatsoever when it comes to finance, and I certainly don't profess to be 'into' money etc, however, the current trend on TV appears to be Overpayment calculators. Every bank and building society is advertising theirs at the minute, what gives?

To me, whilst being extremely helpful to those in a position to overpay, it surely only does the banks/BS out of money in the long term....why would they advertise so aggressively? Are the government putting them under pressure to do so? Do they know something we don't?

I can't help but wonder if a big interest hike is on the horizon and they feel that by encouraging as many to overpay on their finance products at the minute as possible, it'll 'soften' the blow when rates do rise, as people will have adjusted to paying more anyway?

Sorry if the post comes across as incoherent, I'm just curious as there appears to be a new app or calculator offering every day at the minute! It can't be a coincidence!

Cheers,

[Sarnie]

Douglas Arfempty said:

Are the government putting them under pressure to do so?

Yes.

[CoolHands]

If only everyone had a couple of hundred spare a month eh

[Douglas Arfempty]

Sarnie said:

Yes.

Interesting, that in the case of the mortgage over payment calculators particularly, the message isn't to build up a couple of months worth of savings. It just seems very direct and a 'you should do this' hard sell.

[Sarnie]

Douglas Arfempty said:

Interesting, that in the case of the mortgage over payment calculators particularly, the message isn't to build up a couple of months worth of savings. It just seems very direct and a 'you should do this' hard sell.

A recent directive has told lenders that they need to actively be responsible to debtors and show them how to become debt free quicker.........and not just sit there and take in the interest from people paying minimal payments for years..........

[Wacky Racer]

Sarnie said:

Douglas Arfempty said:

Interesting, that in the case of the mortgage over payment calculators particularly, the message isn't to build up a couple of months worth of savings. It just seems very direct and a 'you should do this' hard sell.

A recent directive has told lenders that they need to actively be responsible to debtors and show them how to become debt free quicker.........and not just sit there and take in the interest from people paying minimal payments for years..........

That makes sense.

I couldn't understand why any financial institution would talk themselves out of making ££££s.

[HTP99]

I should imagine that the vast majority of people wouldn't do it anyway; can't afford to or just don't get round to doing it, the people that would overpay are already doing so and have been for sometime.

[Sarnie]

Wacky Racer said:

That makes sense.

I couldn't understand why any financial institution would talk themselves out of making ££££s.

They just need to be seen to be doing the right thing...........