Do loyal mortgage customers get better rates?

One in five mortgage holders choose their lender because they already have another financial product with them, according to Which? research. But does that loyalty actually lead to a better deal?

We asked the UK’s biggest mortgage lenders whether existing customers get preferential rates – and found that loyalty rarely pays. 

Here, Which? reveals the few lenders that do offer better deals to existing customers, the bank accounts that can unlock mortgage discounts, and why it still pays to shop around before your next mortgage. 

Do mortgage lenders reward customer loyalty?

The short answer: very few do. 

Out of 21 providers, only Barclays told us outright that it offers cheaper rates to existing borrowers. Principality Building Society said it typically offers preferential rates to its existing borrowers. 

Accord, Leeds Building Society, First Direct and HSBC said they sometimes offer lower rates in certain circumstances.

Seven lenders said existing borrowers are offered the same or lower rates as new customers, while eight confirmed they don’t offer any discount.

To see how common these deals are, we analysed Moneyfacts mortgage data from 4 November. Out of 7,245 mortgage products, just 224 were aimed exclusively at existing borrowers – only 3% of the market.

Our findings reveal the scarcity of mortgage deals that reward loyalty. This doesn’t mean you should automatically switch, but when you’re near the end of a fixed-term mortgage, it’s worth asking what your lender can offer and comparing this with the best deals on the wider market.

• Find out more: best mortgage rates

What about existing bank customers?

Just three banks we surveyed told us that existing customers with another financial product are offered preferential rates. 

Good news for Club Lloyds current account holders. It's the only mainstream current account, of lenders we surveyed, that offers customers lower mortgage rates. Customers receive a 0.1 percentage point discount. The Club Lloyds current account charges £5 per month, which is refunded every month you pay in at least £2,000. 

A larger rate reduction, of 0.2 percentage points, is offered to Lloyds Premier customers. This account requires customers to pay in £5,000 per month or have £100,000 deposited in savings or investments.

For Barclays and HSBC, only Premier banking customers are offered lower rates. To qualify as a Premier customer with Barclays, you must earn at least £75,000 a year or have £100,000 deposited in savings or investments. To qualify as a Premier customer with HSBC, you must earn at least £100,000 a year or have £100,000 deposited in savings or investments.

• Find out more: best bank accounts 2025

Perks of staying with your existing lender 

A cheaper rate isn’t the only way lenders reward loyalty. Some offer cashback or profit-sharing schemes to mortgage customers.  

Nationwide Building Society, for example, paid qualifying members £100 through its Fairer Share reward earlier this year. 

Yorkshire Building Society gives £250 cashback to savers who take out a qualifying mortgage, and Skipton Building Society offers £250 cashback to Lifetime Isa customers who do the same. 

Sticking with the same lender can also make remortgaging simpler. When you complete a product transfer, you’ll usually face fewer credit and affordability checks than if you switch to a new provider. If your financial situation has changed, staying put could make it easier to secure a new deal. 

• Find out more: best mortgage lenders

Top 5 reasons borrowers choose a mortgage lender

While loyalty is rarely rewarded, our survey shows that many borrowers still favour familiarity when choosing a mortgage lender. 

In our survey of more than 5,000 mortgage holders, the most common reason for choosing a provider was a recommendation from a professional, such as a mortgage broker. 

This is unsurprising, as a broker can search the majority of the market for the best deals, although it's important to note that a small minority of lenders aren’t available through brokers, such as First Direct. 

A broker won't just consider the headline rate. They will take into account other factors, such as fees and early repayment charges, to find the best deal for you.

Many borrowers also pay close attention to the reputation of a lender. If you want to know what real customers think, check out our reviews. We’ve assessed 21 mortgage lenders, analysing their rates and gathering feedback from real borrowers. 

• Find out more: choosing a mortgage broker

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When to think about remortgaging

If you're in the last six months of your fixed term, you can start searching for a new deal now. See our guide on what to do if you need to remortgage for details on the steps to follow.

If you've got more than six months left, it's not quite time to be considering a new mortgage. If you lock in a deal too early, you may need to pay early repayment charges to your current provider, which can cost thousands of pounds. 

If you're currently on your lender's standard variable rate (SVR), then you can probably switch to a cheaper deal. Lender SVRs currently average around 7.27%, more than two percentage points higher than the average fixed rates.