It\u2019s rare for mortgage lenders to offer better rates to reward loyal customers, Which? analysis shows.<\/p>\n
Only Barclays offers cheaper rates to existing borrowers, while Principality Building Society often does.\u00a0Meanwhile Accord, Leeds Building Society, First Direct and HSBC sometimes offer lower rates.<\/p>\n
Seven lenders said existing borrowers are offered the same or lower rates as new customers, while eight don\u2019t offer any discount.<\/p>\n
Reena Sewraz, Which? money and retail editor, said: \u201cTaking out a mortgage is one of the biggest financial decisions you can make, so it\u2019s understandable that many people opt to use a provider they already know and trust. Unfortunately though, our research has shown that this loyalty is very rarely rewarded, with few lenders on the market offering preferential rates to those that already bank with them.<\/p>\n
\u201cJust a handful of lenders told us that they might offer a better deal to an existing borrower looking to remortgage, and only three banks adjust their rates for current account or savings customers.<\/p>\n
\u201cUltimately, sticking with the same bank could end up costing you hundreds, if not thousands of pounds in the long run, so shopping around for a mortgage deal is absolutely essential. You can use a trusted broker to help you navigate the market, and check out real reviews of lenders on Which?\u2019s website.\u201d<\/p>\n
In terms of existing bank customers, three banks offer preferential mortgage rates to customers with other products.<\/p>\n
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Club Lloyds current account holders get a 0.1% discount. The Club Lloyds current account charges \u00a35 per month, which is refunded every month you pay in at least \u00a32,000.\u00a0A reduction of 0.2% is offered to Lloyds Premier customers. This account requires customers to pay in \u00a35,000 per month or have \u00a3100,000 deposited in savings or investments.<\/p>\n
For Barclays and HSBC, Premier banking customers are offered lower rates. To qualify as a Premier customer with Barclays, people must earn at least \u00a375,000 a year or have \u00a3100,000 deposited in savings or investments. To qualify as a Premier customer with HSBC, people must earn at least \u00a3100,000 a year or have \u00a3100,000 deposited in savings or investments.<\/p>\n
Some offer cashback or profit-sharing schemes to mortgage customers.<\/p>\n
Nationwide Building Society, for example, paid qualifying members \u00a3100 through its Fairer Share reward earlier this year.<\/p>\n
Yorkshire Building Society gives \u00a3250 cashback to savers who take out a qualifying mortgage, and Skipton Building Society offers \u00a3250 cashback to Lifetime Isa customers who do the same.<\/p>\n
Sticking with the same lender can also make remortgaging simpler, as product transfers mean you usually face fewer credit and affordability checks than switching to a new provider.<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s rare for mortgage lenders to offer better rates to reward loyal customers, Which? analysis shows. Only Barclays offers cheaper rates to existing borrowers, while Principality Building Society often does.\u00a0Meanwhile Accord, Leeds Building Society, First Direct and HSBC sometimes offer lower rates. Seven lenders said existing borrowers are offered the same or lower rates as […]<\/p>\n","protected":false},"author":1,"featured_media":5621,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n