Halifax is the latest to join the trend. It offers between 0.2% and 0.4% off certain mortgages to their current account customers. Its two year fixed rate mortgage at 60% LTV with a £995 fee is reduced from 3.99% to 3.69% for their current account customers.
Defaqto said banks see the current account as the main relationship builder with the customer and it also enables them to have a much better understanding of the financial capabilities of each customer.
The financial information provider added that the cross-selling of other products on to the existing customer base is destined to become the key battleground as each bank strives to become the one-stop shop for all the personal finance needs of their customers.
David Black, banking specialist at Defaqto, said: “We have already seen banks focussing their unsecured lending on their existing customers but now there is the beginning of a trend to target mortgage lending in the same way with a series of special mortgage offers available exclusively to current account customers.”
Abbey offer its Zero Current account exclusively to their mortgage customers. It offers free valuations and a cash back on certain mortgages to their Abbey or Alliance & Leicester current account customers.
Nationwide offers 90% mortgages to their FlexAccount (current account) customers and NatWest gives some preferential mortgage rates to their Advantage Private, Advantage Business and Advantage Gold current account customers.
