Do you get a better rate if you're already with a lender?

Tatters26

Looking at a re-mortgage next year. First time I've done it. Seems there are much better rates for me switching to a new product, than the like-for-like equivalent for someone purchasing with them for the first time. Is that a thing? Or am I reading this all wrong?

5.99%   -  https://www.kentrelianceforintermediaries.co.uk/residential/mortgages/product-transfer

7.09%  -  https://www.kentrelianceforintermediaries.co.uk/media/2046/residential-products-guide.pdf

MalMonroe

You could always phone them and ask. Just say you're thinking about it and wondered if they would be able to offer you better rates. 

It's worth a phone call - at least then you'll know because whatever anyone on here says, it'll only be speculation.You need to get the proper facts from the source. (And ask them to put it in writing, if possible, even if it's only an email.)

DullGreyGuy

I've only remortgaged twice and both times has been a case of sticking with the current lender as I believed their LTV is much lower than another lender would think. In both cases brokers were offered slightly lower renewal prices than the lender offered me directly but we are only talking a couple of BPs (though that significant enough on a London sized mortgage)

ACG

It really does vary from lender to lender and how much business they want. 
Some lenders offer better deals to existing customers all the time, some never and some do it periodically. Some times it will just be the same deal. 

As with anything in this industry "it depends" comes to mind. 

mi-key

Also factor in the ease of staying with the same lender. A lot less faffing about, checks etc....

diystarter7

MSE started a thread about this about 2/3 days ago about how it was poss, most likely to be cheaper with existing co. I posted on it about that being a fact as our kids had done that before the end of their fixed term because of that incompetent clown Truss setting fire to the financial markets

So as the current lender for best rate/costs and then shop and I'm guessing you will stay and they will want you if you pay on time and your property is worth more than the amount now outstanding imo.

amnblog

Keep an eye on the letter they send you when your rate is due to end.

We have seen lower rates on that, than those published on the product list.

leew

Similar boat to Tatters26 so interested to know the answer to this although it seems there is no answer really!

I do take it that you will get offered a better rate with your current lender rather than just ending up on their svr. 

lesleyb

amnblog said:

Keep an eye on the letter they send you when your rate is due to end.

We have seen lower rates on that, than those published on the product list.

The rate on our letter was significantly lower but when we phoned they said it was an old rate and the rate was the same for old and new customers. That was with Nationwide. 

penners324

Rates usually about the same but no need to faff about with conveyancing 

JMA74

Depends hugely on the lender you are with and a bit of luck if your lender has decided to be competitive or not.  

For example if you had a large loan and wanted a 10 year fixed rate you might ask your existing lender who is Halifax if they can do it.  They will do it for 5.81%.   Nationwide do the same 10 year fix for 5.14%.   If you have a £250k mortgage over 20 years then thats around £100 a month more to stay with your existing lender. Over 10 years thats £12,000 in extra payments to avoid a bit of faff and conveyancing.   For the sake of 30 minutes of sending documents to a broker than it seems a no brainer

Obviously if you were with Nationwide in this example then you would stay with them as they offer the best deal anyway.  

And another aspect is that not all lenders offer all types of product.  You might want to move on a tracker at the moment but your current lender only offers fixed rates.