loyalty does not pay

mad_mam_of2

i am coming to the end of my fixed rate deal with S*****der, I rang them to check what rate they could offer but they said the standard rate (4.24%) was the best i can get. My mortgage is only 34k and is due to be paid off in 12 years. I have had 2 mortgages with them now and been a loyal customer for 19 years, Yet if I was a brand new customer they could offer me a much lower rate with no fees.How is that fair?:mad:

kingstreet

You on interest-only, by any chance?

It seems IO borrowers are routinely told this. If you change to repayment and/or open a 123 account, the product you are offered seems to improve.

There are plenty of fee-free remortgage offers out there for you to look at if you aren't on interest-only. Remember to factor in Santander's discharge fee, £225 though.

mad_mam_of2

hi, i'm on a repayment mortgage - i was bitten by the interest only sting on my first mortgage as a naive 19 year old!:eek:

Thrugelmir

mad_mam_of2 wrote: »

i am coming to the end of my fixed rate deal with S*****der, I rang them to check what rate they could offer but they said the standard rate (4.24%) was the best i can get. My mortgage is only 34k and is due to be paid off in 12 years. I have had 2 mortgages with them now and been a loyal customer for 19 years, Yet if I was a brand new customer they could offer me a much lower rate with no fees.How is that fair?:mad:

New customers will borrow more. So will be far more profitable.

Why not remortgage if you are unhappy with the rates on offer?

Bluebell1000

My fixed rate ends in April with Santander, I was offered a new 3.49% 2 year fix or 3.99% 3 year or 5 year fix, both fees free and at 80% LTV. The only difference is my mortgage is £85k nd 23 years left, so a bit higher than the original query. I don't have a 123 account either, though they did their best to sell me one It might be worth asking again if that is what they have available (as of last week anyway)????

maninthestreet

Surely you have realised by now that the financial industry does not reward customer loyalty??

dimbo61

Santander want mortgage customers to move to other lenders.
Reduce there mortgage book in the UK
Simple they want you to leave so take your business elsewhere
Good Luck

Gizmo247

Similar to here? https://forums.moneysavingexpert.com/discussion/4434539

Dave_Ham

Add in that the rate you will go to is 4.74% and not the 4.24%

If you can go elsewhere and see what you can get..

kingstreet

One man's loyalty, is another man's inertia.

Lenders rely on inertia. Inertia pays for better deals for new borrowers, at the expense of existing borrowers.

Introductory shagpile. Existing customer lino.

Inertia fuels the "compare the confused supermarket" culture and ensures those who stay with the same provider, pay for the ones who move every year.

Sad really.

Thrugelmir

maninthestreet wrote: »

Surely you have realised by now that the financial industry does not reward customer loyalty??

If there was a better option available. Would this customer stay? No.

Let's keep matters in perspective.