Why do remortgages get worse rates than first time buyers?

herbgardinia

Coming to end of fixed rate of 2.29% with Halifax. The offer I can choose just to directly remortgage with them is 2 years at 2.89 or 5 years at 2.91.
When I put the same details in as a first time buyer on 73% mortgage LTV I'm getting rates of 1.2% and a £200 lower monthly mortgage payment?
Is it just to lure the newbies in? I know I could remortgage with another lender but bit concerned as my credit report is carrying a lot of debt at the moment - no defaults/missed payments just higher level of commitment.

mwarby

Because most people are reluctant to change lender. To do so requires a revaluation and legal work

its very possible that the offer was a good one until the recent downturn. It’s very possible that they have better deals available if you ask

Whats_your_forte

That's mainly just the Halifax for you! Always had two sets of rates and tiered too in terms of worst rates the smaller your mortgage balance. Other lender do offer their front line rates on renewal. To avoid this in the future, I'd leave them

Cscott139

Halifax retention rates can be pretty bad. Speak to a broker as you will more than likely get a much better deal by moving elsewhere.

EimearF

Remortgage offers are often tailored based on your credit rating. I had debt last tme and got offered a worse rate than first time buyers, this year I am debt free and got much better rates. 

PasturesNew

Luring... they lure you in as an FTB and most are unlikely to then change. 

amnblog

Wires crossed here somewhere.
The only 2.89% rate I can see is a 3 year fix - cannot see a 2.89%. You should be able to access 2.05% & 2.30% from Halifax but you wont get them direct.
Speak to a Broker.