Mortgage deals increase but with existing customer bias

| May 12, 2010 | 0 Comments

New research from financial analyst, Defaqto, shows that the number of mortgages on offer in the UK has increased to 2,948, up from 1,686 in July 2009.

However, there is a snag because lenders are restricting over 25% of their home loans to existing customers.

Some offerings exclude all but existing mortgage borrowers while others are available to current account holders and savers.

Existing customers can also benefit from reduced fees and higher loan to value ratios, and are likely to secure a rate that is between 0.05% and 0.2% below the standard variable rate offered to a newcomer, the research reveals.

Defaqto insight analyst, Kevin Bray, comments: “The banks are clearly keen to further their ambitions of becoming one-stop shops for all their customers’ personal financial product needs and offering special mortgage deals to their current account customers is a definite part of this strategy.”

Lenders who have already embarked upon this course include Alliance & Leicester Direct, Halifax, HSBC, Lloyds TSB, Lloyds TSB Scotland, Nationwide Building Society, NatWest, Norwich and Peterborough Building Society, Royal Bank of Scotland, Santander, The Co-operative Bank, and Ulster Bank.

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