Egg has changed its two-year fixed-rate mortgage ads after criticism from John Charcol senior technical director Ray Boulger in Money Marketing last week.
The bank initially failed to state that early repayment charges applied for three years on what is considered to be a high variable rate after a discounted 4.74 per cent for the first two years. It also got the base rate wrong when advising on its variable rate, which is 2 per cent above base, once the discount period is over.
It said the variable rate was 6.75 per cent, which indicated the base rate is 4.75 per cent, when it is actually 5 per cent. That has now been corrected.
Boulger had accused Egg of being “cavalier” and of “taking the art of non-compliance to a new level” by hiding early repayment charges behind a high variable rate.
But Egg reacted quickly to alter its press ads and says it plans to correct its website ads this week.
A spokeswoman says: “The ERC and correct base rate should have been there in the first place but the changes have now been made to our press ads and the website will also be changed this week.”