Do banks reward account holders with. better mortgages?

flyer22

Hello
I have two current accounts. The first with a bank I've had for over 20 years and the second I've had for 6 years. The second younger account no longer serves its purpose and I am considering closing it. However, it is a bank which does offer mortgages and I wondered if, as a customer, it might be worth keeping the account open with minimal balance just so when we do need a mortgage we might get a better rate as current customer? Maybe a broker would get a better deal in any event?
Any thoughts welcome.
Cheers

davidmcn

No, I wouldn't expect them to "reward" you with a special deal, any lender will assess you based on objective criteria and not how loyal you are to their brand. You should be shopping around anyway, not just going with an existing bank.

zagubov

No. Some banks have/had special mortgage deals available to existing mortgage holders. Some make you open a bank account alongside their mortgage. Never heard of any reserving special mortgage deals for their bank account holders.

Thrugelmir

Days are well gone when you needed to save with an institution to obtain a mortgage. Though Nationwide offer incentives to those that use their savings schemes. 

[Deleted User]

Mainly a relic of the past.   Banks used to try get people through the door with incentives like '0.2% off your mortgage if you bank with us' (Halifax).    They did this primarily to flog other services that made them more money.   
Generally most would agree that the banks sales tactics in the past ended up costing them more in compensation than it gained them in profits so they don't tend to offer these deals anymore. 

It has almost swung the other way and now some high street banks give cheaper deals to clients who have come via brokers than their own branch network. 

kingstreet

HNW account holders such as HSBC Premier and Barclays Premier benefit from lower fees and in the latter case higher borrowing power in certain circumstances. In terms of longevity of holding an account, no. There is no reward for having your current or savings account for over ten years, or similar.

John_

Yes, HSBC have mortgages only available to holders of certain accounts.

silvercar

We found that a relationship with a bank can lead to more flexibility. We needed to borrow 15k more than the initial mortgage offer. After speaking to our relationship manager at the bank, and discussing with him that if we didn't get it we would move everything elsewhere, current accounts, savings account and business account, he fairly swiftly had our mortgage offer increased.