The Habito One product is fixed for the term of the mortgage, but customers can leave at any time as there are no early repayment charges. Habito said that they researched the script of the ad and monitored reactions to the advertising concept.

They said that there was a consistent understanding of the central message delivered by the ad that interest rates could be fraught with danger and that if they rose, consumers were at risk of getting stung. 

In its ruling the ASA said: “We considered that consumers would understand from the ad as a whole that interest rates were rising significantly and/or were likely to rise significantly in future, leading to a risk that rates across the mortgage lending market could increase to an extent that was unaffordable for many consumers.”

It also said: “While the ad stated “homeowners could get stung” (emphasis ours) as a result of a rise, there was nothing to indicate that while it was likely that rates could rise in future, the fact of interest rates rising significantly was only a small possibility, not a given.”

The ASA added: “We acknowledged that uncertainty around future changes in interest rates was a concern for some consumers when selecting a mortgage, particularly at the time the ad was seen. 

“However, while interest rates might well rise, future trends could not be predicted with any certainty. 

“Taking into account the imagery in the ad illustrating potential consequences in extreme terms and the sense of certainty with which they were presented, we considered that the impression created by the ad misleadingly exaggerated the likelihood that future rate rises would be significant compared to current rates and the risks of the rest of the mortgage market compared to the Habito One product.”

Habito chief marketing officer Abba Newbery says: “We are beyond disappointed to learn about the ASA’s decision to ban our Habito One ‘Don’t get stung’ TV ad. 

“While we of course respect and accept the ASA’s ruling, we refute the claim that our ad was misleading. 

“Since it first aired, there have been numerous news reports from economists warning of interest rate rises in line with rising inflation. 

“Senior policy-makers at the Bank of England have signalled at least two rate rises for 2022 with latest reports suggesting a rate rise as early as November this year.

“Habito One is the first mortgage of its kind: a long term fixed rate mortgage designed to remove uncertainty, vagueness and potential risk – such as potential future interest rate rises – from homeowners’ home-financing decisions. 

“We stand by our product and our claims and are unapologetic about our mission to save people from the uncertainty of home financing hell.”