{"id":4023330,"date":"2019-03-13T15:29:52","date_gmt":"2019-03-13T15:29:52","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=4023330"},"modified":"2019-03-13T15:29:52","modified_gmt":"2019-03-13T15:29:52","slug":"mortgage-lenders-rewarding-loyalty","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/news\/mortgage-lenders-rewarding-loyalty\/","title":{"rendered":"Mortgage\u00a0lenders\u00a0rewarding\u00a0loyalty"},"content":{"rendered":"

When a mortgage term reaches its end<\/span><\/b>,<\/span><\/b>\u00a0most homeowners know they\u2019ll get a raw deal from their existing lender, but things are changing as\u00a0<\/span><\/b>lenders actively seek to retain existing customers.<\/span><\/b>\u00a0<\/span><\/h3>\n

Staying with one mortgage lender\u00a0<\/span>for the life of your mortgage\u00a0<\/span>has always been a rarity<\/span>.<\/span>\u00a0<\/span>Homeowners\u00a0<\/span>are often given<\/span>\u00a0little choice but<\/span>\u00a0to remortgage to take advantage of more competitive deals<\/a>. It\u2019s a source of frustration for many, who don\u2019t want the hassle of remortgaging, yet can\u2019t get a good deal with their existing lender; despite the\u00a0<\/span>fact<\/span>,<\/span>\u00a0their lender can offer attractive incentives and lower rates to first-time buyers.<\/span>\u00a0<\/span><\/p>\n

However, some banks and building societies are finally recognising the benefits of keeping good customers<\/span>. Customer loyalty, it seems, does have a value and homeowners may find that they are being offered \u2018under the counter\u2019 deal<\/span>s<\/span>\u00a0to stay with their<\/span>\u00a0existing<\/span>\u00a0lender<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

An end to the\u00a0<\/span><\/b>\u2018<\/span><\/b>loyalty\u00a0<\/span><\/b>penalty<\/span><\/b>.<\/span><\/b>\u2019<\/span><\/b>\u00a0<\/span><\/h3>\n

The \u2018loyalty penalty\u2019 has historically impacted all home loan custom<\/span>e<\/span>rs who at the end of a fixed<\/span>–<\/span>term deal\u00a0<\/span>are<\/span>\u00a0automatically moved<\/span>\u00a0to their\u00a0<\/span>lender<\/span>‘<\/span>s<\/span>\u00a0standard variable rate. Customers can then end up paying thousands of pounds more than they need\u00a0<\/span>to<\/span>\u00a0unless they<\/span>\u00a0proactively seek a better remortgage deal<\/span>\u00a0with another lender.\u00a0<\/span>\u00a0<\/span><\/p>\n

Lenders are finally<\/span>\u00a0more likely to try and entice existing borrowers to stay with them with an \u2018under the counter\u2019 deal, offering the best interest rate or slashing remortgage fees for existing customers<\/span>, and setting up a product transfer rather than waving a\u00a0<\/span>good<\/span>\u00a0customer goodbye.\u00a0<\/span><\/p>\n

1.19 million borrowers opt<\/span><\/b>ed<\/span><\/b>\u00a0to stay with their existing lender\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

According to UK Finance, l<\/span>ast year twice as many borrowers stayed with their existing mortgage provider as switched to a new one<\/span>, a<\/span>nd the trend is increasing. In Oct-Dec<\/span>\u00a02018, 331,500 homeowners\u00a0<\/span>chose to stay with their\u00a0<\/span>current<\/span>\u00a0lender with<\/span>\u00a0a product transfer deal, compared to 291,900 in the previous quarter<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

If you\u2019re an existing Newcastle Building Society\u00a0<\/span>customer<\/span>, you could benefit from a rate of 2.39% for a five-year fixed deal, compared to 2.59% offered to new customers. Coventry Building Society offer a reduced\u00a0<\/span>rate<\/span>\u00a0on their two-year\u00a0<\/span>deal<\/span>\u00a0to current borrowers, and Family Building Society and Cambridge Building Society are both offering the same\u00a0<\/span>rate<\/span>\u00a0to all customers, but reduced fees to existing borrowers.\u00a0<\/span>\u00a0<\/span><\/p>\n

While there are no guarantees that an existing lender can offer a better deal than remortgaging with a different provider, it\u2019s certainly worth exploring the possibility.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

When a mortgage term reaches its end,\u00a0most homeowners know they\u2019ll get a raw deal from their existing lender, but things are changing as\u00a0lenders actively seek to retain existing customers.\u00a0 Staying with one mortgage lender\u00a0for the life of your mortgage\u00a0has always been a rarity.\u00a0Homeowners\u00a0are often given\u00a0little choice but\u00a0to remortgage to take advantage of more competitive deals.… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":4802,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,6],"tags":[73,389],"class_list":["post-4023330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-mortgages-money","category-uk-housing-market","tag-first-time-buyers","tag-homeowners"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/4023330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=4023330"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/4023330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/4802"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=4023330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=4023330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=4023330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}