New customers and Existing Customer Deals?

sys4096

Hi All,

I'm just ending a 5 year 5.59% fixed deal with A&L at the end of August. I'm going to gamble on interest rates staying reasonable for the next 2 years and go on a tracker which will save me £200 per month whilst rates are their current level, so I can pump this into clearing a debt I have over the next couple of years.

The best they offer me as an existing customer is 2 year tracker at 3.59% with a 599 arrangement fee.

New customers have 3.54% with no setup fee or 2.95% with 499 setup fee

I am probably not remembering the facts correctly but I'm sure I recall something in the news a while back meant that mortgage companies had to offer their existing customers the same rates as newcomers?

When I asked them about the rate on the phone they said no rates for new customers are completely different. I didn't question it at the time, but can anyone please advise if they do have to give me the same deals before I call them back?

Cheers

beecher

No they don't have to give the same deals, and normally won't. Have you looked at the option of staying on the SVR? Or checked if you automatically drop onto a tracker.

sys4096

Cheers mate, I checked this out, I drop to SVR which is 4.99% at the moment