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Product transfer rates up to 0.35% cheaper than new deals – Anderson Harris

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  • 04/03/2019
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Product transfer rates up to 0.35% cheaper than new deals – Anderson Harris
Some lenders are offering significantly better rates to their existing customers through product transfer deals than to new borrowers, research by broker firm Anderson Harris showed.

 

Anderson Harris looked at three lenders – Accord, Skipton Building Society and Platform – and found all were offering existing customers better rates than new borrowers when it came to two year fixed rate mortgages.

At Accord the margin was most significant with customers on 70 per cent loan to value (LTV) mortgages able to get a product transfer rate of 1.53 per cent compared to the 1.88 rate available to new customers.

With both Skipton BS and Platform the difference between rates available for new and existing customers was 0.15 per cent.

When it came to five year fixes on 70 percent LTV, the differential was smaller. Platform offers product transfers to customers at 1.94 per cent while new customers get 1.99. With Barclays, it was 1.98 per cent for transfers and 1.99 for newcomers.

 

Attractive deals

Jonathan Harris, director of Anderson Harris, which carried out the research, said: “The mortgage market is extremely competitive right now so it makes sense that lenders want to hang onto customers by offering them attractive deals, rather than letting them remortgage to a rival lender.

“It is good news for the borrower as it’s much easier and quicker to do a product transfer than go through a new mortgage application process for another lender.

“However, not all lenders will offer such good deals to existing customers so it is still worth borrowers contacting a mortgage broker just to check whether there is a better deal out there.”

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