CUT-price mortgage deals, aimed at tempting home buyers to switch building societies and banks, have been slammed by an East Lancashire society chief.

Big cash offers and low mortgage rates on offer to lure new business are not mirrored in good deals for existing borrowers.

In his annual review, Eddie Shapland, chief executive of Marsden Building Society highlights "substantial price-cutting" among competitors.

"We strongly believe that such practices have discriminated against loyal members of societies who have not transferred their mortgages to other financial institutions.

"A mutual building society is based on the loyalty of all its members, whether investors or borrowers, and it is a sad fact that some of our competitors seem to have forgotten this."

Mr Shapland says the Nelson-based Marsden, Lancashire's biggest independent society with 170 staff, has successfully kept hold of its mortgage business by offering extra help to both new and existing borrowers.

In another successful year, the society, which has pledged its determination to remain independent, saw net profits rise by around 20 per cent to £1.2 million, despite "subdued demand" for mortgages in 1995.

Assets rose by nearly £3 million and now stand at £263 million.

Subsidiary, Marsden Home Renovations Ltd., carried out 155 home improvement schemes worth £200,000 in Pendle.

Marsden Homes (Pendle) Ltd "moved forward strongly" in 1995 and completed three housing development projects, say directors.

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