Lenders are increasingly offering better mortgage deals to existing customers, in a bid to stop you switching.
Last week Nationwide launched a new range of mortgages – an interesting move for two reasons.
Firstly, it tweaked its rates upwards slightly, signalling the end of perhaps the shortest mortgage rate war in history. Secondly, it introduced two tiers of pricing – one for existing mortgage customers and one for new ones.
And it’s the existing customers that bag the best rates. This means that if you currently hold a mortgage with another lender and want to move to Nationwide, you will pay a premium for the life of that deal compared to existing borrowers who want to stay with the lender.
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