Deciding which is best. Remortgage deal or preferential loyalty rate?
UK lenders are competing for new business and many are releasing cheap rate remortgage deals to win new customers.
While lenders want to increase business, some are placing more importance on retaining existing customers.
Some lenders are therefore releasing their best possible remortgage deals to attract new borrowers, and others are offering loyalty rates designed to retain existing customers. Some lenders such as Nationwide are doing both.
The Nationwide is offering existing loyal customers a preferential rate for additional borrowing to stop them being lured to a new lender. New borrowing will be given a 0.1% discount.
Whether mortgage holders are being offered a loyalty deal or a competitive remortgage rate they are likely to benefit.
However if your lender offers you a preferential rate for additional borrowing, it is vital to compare this rate against remortgage deals from alternative lenders.
By comparing your rate against offers in the wider market you can work out if it is worth accepting. Don't allow yourself to be seduced by an offer which actually works out less competitive overall.
Loyal customer incentives can be financially helpful, however they should not be the reason to stay with a lender on a less competitive rate. Especially since there are currently some cheap rate remortgages to be had. Incentives are only worthwhile if the deal is cheaper over all.
For a cheap rate remortgage quote call Deal Direct.
