First-time mortgage: advantages to being an existing bank customer?

annaps

Hello,

I'm sure someone must have asked this before, but I can't find the answer by searching, so apologies if this is a duplicate question!

Do banks offer you a better deal on a mortgage if you happen to bank with them already?

I wouldn't expect them to offer you a wildly better rate, but do they ever throw in a few extras, or take into account the fact that you've banked with them for years?

I'm likely to be a first-time buyer in a year or two. I was just about to close a Natwest current account that I have. But I've banked there for 15 years, and I thought maybe it's worth keeping it open - just in case Natwest might look a bit more favourably on a mortgage application than a bank that knows nothing about me.

What do people think?

thanks!
Anna

Thrugelmir

Believe that Barclays have recently started offering preferential rates to existing customers.

So worth asking . Banks are becoming more interested in retaining existing customers than winning new business.

TMoose

Halifax also offer preferential rates to Current Account customers.

tkitmike

I personally think Banks should reward existing customers, but unfortunately not many banks do reward or can afford to reward customers :-(

kkgree1

Banks and Building Societys are definitely offering better rates to existing customers. We are in the process of switching our current account from Halifax to Britannia in order to take advantage of one of their "exclusive" mortgage deals for existing customers.
I wouldn't switch until you need to though. We've generally found in the last few years that you get very little in return for loyalty and have moved accounts as and where the best rates are!

brit1234

I think they are less likely to turn you down if you are existing as the have access to all your transaction history.