Santander - Better rates for new customers at the expense of existing?

Heisenbug

My current deal with Santander ends in July and I now have the option to change to a new deal online. The house is valued at £175k with £136k owed on the mortgage so 78% LTV. The online change existing deal is offering a 2.09% 2yr Tracker with £999 booking fee. If I use their remortgaging to us calculator there's a 2.04% 2yr Tracker with no booking fee, free valuation and standard legal fees. The same product shows up on comparison sites and their broker site.

Have I missed something or are new customers clearly being offered far superior deals to the tune of £999 and 0.05%? Am I being cynical in thinking they don't make their existing customer deals public for a reason?

I've rang Santander but the person on the end of the phone was keen to point out that moving would mean a full application have other costs and they couldn't change the rates or offer the other products. They refused to acknowledge the other rates and it was a very frustrating call which ended with me lodging a complaint.

There's better rates out there and I'll end up switching but wanted to know if this was normal Santander behaviour? Other lenders seem to offer competitive rates for existing customers.

ACG

They do not have to offer you anything and you do not have to stay. You need to decide if you want an easy life that costs you more or do some more work but save a few quid.

I can not see the point in complaining as their only requirement was to offer you the initial rate and then put you on the SVR. I can not see them backing down, this comes up every now and again on these forums.

amnblog

It's a business decision, rightly or wrongly.

AnotherJoe

Are you saying that the 2.04% deal isn't available to you as an existing customer, or that it is but they wont proactively offer it?

Heisenbug

I get that its a business decision and I'll ultimately move lender and they'll lose my custom (mortgage and current account). I'll also be far less likely to consider them in the future and I'll be happy to share my bad experience with others. By posting I'm looking to double check I've got the right end of the stick and check if this was common practice. Other lenders seem to publish their rates for existing customers whereas Santander don't so I'm looking to determine if this the reason so I can avoid other lenders that do the same or maybe they all do?

The person on the phone said the only products available to me were those listed on the remortgaging site. The tracker is one example, all the products on the remortgaging list were less favorable than those on the public website.

Thrugelmir

Attractive rates are offered to new borrowers. Though this needs to be put in context of the amount of funding available at the rate advertised. Headline rates make for media coverage. Cheap marketing and advertising.

marsman802

Yes you're paying for the convenience of going nowhere.

Clearly there are enough people who do just that so they can make a bit more out of it

sitesafe

Santander are one of the few banks that don't publish the rates for existing customers - I wish they would say why. Other banks do and I think Nationwide aim to give existing customers the best rates. I am with Santander and find it quite irritating not to be able to see what I'm eligible for without having to go through the whole phone or online process. Last time I moved onto a new product I was only offered rates that were higher than those for new customers. I was stuck with having to use them though as I'd gone self employed only a year before the fix expired and wouldn't have had the right proof of income to go to a new bank. I know it's the way they operate but why not advertise them when they are happy to advertise all others.?

Spangled

I'd add that if you are not looking for a repeat of this experience in two years' time (with whichever lender you end up with) then a two-year tracker is maybe not the way to go - because at that point you'll need to remortgage with yet another lender or product switch with your existing lender in order to avoid going onto the SVR. A longer tracker, longer fix or a lifetime tracker could save you the hassle (and expense) of remortgaging in two years' time. A broker can go through all of the options with you. Good luck!