Kevin Bray, insight analyst for banking at Defaqto said: “While it is no surprise to see that almost 10% of mortgages are restricted to lenders’ existing mortgage borrowers, there has been a noticeable move by the major lenders to launch mortgage deals that are only available to their current account holders.”
He added: “The banks are clearly keen to further their ambitions of becoming one-stop shops for all their customers’ personal financial product needs and offering special mortgage deals to their current account customers is a definite part of this strategy. The typical deal available has a rate that is between 0.05% and 0.20% cheaper than the lender’s standard mortgage range. In some cases there are reduced fees and others permit higher loan-to-value borrowing than their standard range.”
