L&C launches text messaging for mortgages

A service that sends text messages to borrowers when it is time to review their mortgage has been launched.

10:17 26 November 2004

A new service that sends text messages to borrowers when it is time to review their mortgage has been launched by London & Country Mortgages (L&C).

If borrowers register for the Mortgage PROMPT service they will be sent a text message two months before their current deal ends, the no fee broker has said.

The text message alert will allow customers to shop around to find the mortgage deal that suits them best, allowing a smooth switch from their current deal without having to keep paying for it while they look for a new one.

The Mortgage PROMPT service has been launched just days after internet bank Egg found that borrowers on discounted rates have very little time to remortgage before they lose any benefit from their deal.

James Cotton, mortgage specialist at L&C, said: "Remortgaging can take a couple of months to complete, so 30 seconds work to register for Mortgage PROMPT now could save you 352 [two months' interest] just by cutting out any delay."

Most discounted, fixed, and capped rate mortgages charge borrowers to repay their debt early during the period of the fix, cap or discount. They will typically then revert to the lender's standard variable rate for the term of the loan.

"Anyone with early repayment charges on their current deal should register for this service. With the savings that can be made by switching to a new competitive deal, there is no need for anyone to be paying their lender's standard variable rate," Mr Cotton added.

People wishing to register for this free service can do so at L&C's website , borrowers can request an alert by either text message or email and need only provide their contact details and a record of when the early repayment charges on their current deal finish.

Phone numbers will only be used for the Mortgage PROMPT service, L&C adds.