YBS uncompetitive for existing mortgage customers

honeststeveo

I have a 2 yr fix with YBS which will reach the end of its fixed period soon.
YBS will only offer me as an existing customer 2.09% on another 2 year fix.

However if i was a new customer i could get a 2 year fix with them at 1.18% with about £1500 in fees.

I've done the sums and I'll be over £2.5K worse off on the existing customer deal over the next 2 years than if they would offer me the 1.18% deal. However i've asked till i'm blue in the face and they won't budge on this unfair policy.:mad:

Obviously i can take my business elsewhere (they don't seem bothered if i do) but is there any recourse to get them to offer me a better deal?

They are a society after all supposedly there for the benefit of the members. As such they should have a moral obligation i believe. I notice that Nationwide for example actually offer better (loyalty) deals to existing mortgage customers.

I can't help but think it devious the way that their website almost hides the deals for existing customers (which they have the audacity to call "special" deals) while shouting about the new customer deals.

Has anyone had any similar experiences /successes?

lee111s

No chance unfortunately. Most lenders are the same. It doesn't pay to be loyal!

It's for this reason I'm remortgaging to Nationwide, due to complete tomorrow.

amnblog

Why did you choose to use them originally Steve?

honeststeveo

lee111s wrote: »

No chance unfortunately. Most lenders are the same. It doesn't pay to be loyal!

It's for this reason I'm remortgaging to Nationwide, due to complete tomorrow.

sad isn't it. Good luck tomorrow.

honeststeveo

amnblog wrote: »

Why did you choose to use them originally Steve?

They offered me a competitive deal (of course I came with the magic label "new customer")

amnblog

The business clearly values new borrowers as priority.

That has not changed since they attracted you.

honeststeveo

Granted though their arguably intentional method of obfuscating the poor deals for loyal customers means that they are not really declaring their hand up front when you first consider being their customer.

andyfromotley

i came to the end of a fix with YBS years ago and their deals and rates were dreadful, so i moved.

Their method obviously works for them but its a puzzle given the cost of attracting and processing new customers.

I wonder if its because they have sold of their mortgage books whilst they are still in the fixed period and thus require a constant stream of new lenders?

honeststeveo

Yes the existing customer deals have been dreadful for at least 2 years. I'm sure it's an intentional policy.

Perhaps they retain a big enough proportion through apathy, ignorance and indeed mortgage prisoners to make it worth the high turnover.

amnblog

honeststeveo wrote: »

Yes the existing customer deals have been dreadful for at least 2 years. I'm sure it's an intentional policy.

Perhaps they retain a big enough proportion through apathy, ignorance and indeed mortgage prisoners to make it worth the high turnover.

It works for them clearly Steve.

kingstreet

... and I hereby rest my case on why none of my clients will ever end up stuck on 5.79% SVR with Accord.

YBS Group can't be trusted to have decent customer retention products.

The "mortgage prisoner" who can't go elsewhere could end up paying nearly 2% over the odds each year for a short-term advantage of perhaps 0.1% or 0.2% at the outset.