Big surge in tied products

The proportion of mortgages and regular savings accounts that are only available for people who have another product with the same provider has increased dramatically since the beginning of 2010, discouraging consumers from shopping around to get the best deals, finds new research from the experts at Which? Money.

In some cases tied products offer poor value-for-money, as the products they are tied to may not be the best available. First Direct is currently offering one of the cheapest five-year fixed-rate mortgages for borrowing 65% or less of the property's value, but you also have 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."