UK Mortgage dealers penalise Existing Customers.

Mortgage dealers usually penalise loyalty. It sounds a little perverse but is entirely true. If you are an existing customer the bank will probably have you on its highest standard variable rate. If you are a new customer you will probably be entitled to a special offer which offers an interest rate at least 1% lower than the standard variable rate. The reason banks do this is that they rely on customers inertia. There is little incentive to offer better deals to customers who are prepared to stay with the existing mortgage deal. Often mortgage payers are unaware of their circumstances and how much they are paying each month. If you are one of these borrowers you can probably find a better deal. Remortgaging is really one financial decision worth taking time over. Those who do take the time to find the best remortgage quote will definitely be able to benefit from the increasingly competitive remortgage market in the UK.

 

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"Britain's biggest building society said that existing customers who want to re-mortgage will from December have to pay between 0.1% to 0.25% more than the rates charged to new customers buying a home."