Many Britons are told that loyalty doesn’t pay but mortgage lenders are now offering deals to their loyal customers that shows that it pays. These deals, termed product transfers, are usually not advertised so new customers do not get to learn of them. There is now pressure for these deals because according to research figures, many people are switching mortgage products in record numbers. These companies are using these to keep their customers satisfied. To find these deals, one would hopefully use a mortgage broker. An example of such a company is Newcastle Building Society. The company offers rates of 2.39 percent to existing customers but for the same product varies the rate to 2.59 for new customers. But there is a cache to the deals. They come with a fee that is higher than the fee for new customers. Experts say that they are not surprised about this recent trend in the market.
Key Takeaways:
- Although many times Britons are told that it doesn’t pay to be loyal, the new secret deals mortgage banks are offering to their loyal customers shows that it pays.
- The number of Britons who are looking for these deals are increasing and sometimes the banks don’t even advertise these deals to the public.
- NewCastle Building Society is an example of a mortgage provider who offers rates of 2.39 percent to existing customers in comparison with 2.59 for new customers.
“Recent figures from trade body UK Finance show that 331,500 homeowners switched mortgage product with their existing provider in the last three months of 2018, compared to 291,900 homeowners during the third quarter.”