Mortgage - New Customer v Existing Customer Rates

JamieH1975

Hi all, my current mortgage deal comes to an end at the end of January and I'm looking to transfer to a new deal. One of the best rates I have found it with Lloyds for new customers. My current mortgage is with Lloyds but the rate being offered to existing customers is considerably worse - to the tune of £2000 over a two year fix period. Anyone know if there is a way of accessing the new customer rate? I've spoken to a Lloyds mortgage advisor on the phone and they just say the rates are the rates. Seems barking mad to penalise a customer for trying to be 'loyal' but I know this is the norm across a lot of financial products. Thanks in advance for any tips. JH

foxy-stoat

If you can find a better rate elsewhere then you should do that. You will need to factor in the cost of changing lenders against the £84 odd a month that you could save.

Dont look at it as punishing exiting customers, more of incentives for new ones.

Retired_Mortgage_Adviser

Unfortunately, Lloyds doesn't use intermediaries (brokers) so they're making the most of it.


If the difference is 2k over just two years, it's probably even more if you compared it with the whole of market.


Might be worth talking to a broker to see what your options are and how it compares to the product switch that you have been offered.