By clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
An 'existing relationship' with a bank or building society is the joint-most important factor when it comes to choosing a mortgage provider, Which? research shows.
A quarter of mortgage-holders (24%) told us they opted for their lender as they already had other financial products, such as a current or savings account, with them.
But does brand loyalty pay when it comes to applying for a mortgage?
We asked the UK's biggest mortgage lenders whether they offer better rates to existing customers - read on to find out what they told us.
Find the right mortgage using the fee-free service provided by L&C Mortgages
Compare mortgagesIf you click on the link and complete a mortgage with L&C Mortgages, L&C is paid a commission by the lender and will share part of this fee with Which? Ltd helping fund our not-for-profit mission. We do not allow this relationship to affect our editorial independence. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Perhaps surprisingly, having an existing relationship with a lender was just as popular a reason as the size of monthly repayments (also 24%) in our survey. Respondents could give multiple answers, which is why the percentages total more than 100.
| Reasons for choosing mortgage lender | Percentage of respondents who said this was a factor |
|---|---|
| Existing relationship with lender | 24% |
| Size of monthly repayments | 24% |
| Recommendation | 20% |
| Reputation of lender | 17% |
| Total cost of mortgage (fees & monthly repayments) | 14% |
| Headline interest rate | 12% |
| No fees | 12% |
Source: Which? survey of 2,313 mortgage-holders conducted in July 2023
We asked 15 of the UK's largest mortgage lenders whether they offer cheaper mortgage rates to customers who already have a current or savings account with them, but not a mortgage.
Only one provider - Virgin Money - told us that existing banking customers can gain access to cheaper mortgage rates than applicants who don't hold other products with it. Meanwhile Barclays and Yorkshire Building Society said they offer cashback incentives to current customers.
Virgin Money told us customers can benefit if they already have a current account with the bank.
A spokesperson told Which?: 'Our Current Account Reward Mortgages offer lower rate mortgage options to our current account customers compared with our core mortgage range.'
Members of Yorkshire Building Society who've held a YBS savings account for at least 12 months can gain access to the building society's loyalty cashback range. This enables them to earn an additional £250 cashback on top of any cashback which already comes with a product.
To be eligible, they must not have a current mortgage with the building society, and need to live in the UK.
The offer also applies to family and friends, so savers who qualify but don’t need a mortgage themselves can pass on the benefit to someone who does, using a single-use loyalty code.
The UK's fifth largest mortgage lender told us that members of its Blue Rewards scheme can get £3 cashback per month if they take out a Barclays mortgage.
HSBC, Leeds Building Society, Nationwide, Santander, Skipton Building Society and TSB all told us they don't offer preferential rates to existing banking customers.
Co-operative Bank, Coventry Building Society, Halifax, Lloyds Bank and NatWest didn't respond to our request for information.
Clearly, in most scenarios, mortgage applicants' loyalty to their bank is misplaced when it comes to getting a good mortgage rate - so always shop around when looking for a mortgage, and talk to a mortgage broker if you want personalised advice on the best product for you.
If you're looking to get a mortgage and don't know where to begin, we're here to help.
Our comprehensive mortgage guides provide advice on everything from saving for a deposit to finding the best deal and applying for a mortgage.
If you're not sure where to start with comparing mortgages, it's worth taking advice from a whole-of-market mortgage broker, who can analyse all of the deals available to find the right one for you.
To get an idea of the best deals currently available, check out our guide on the best mortgage rates, which lists the best deals for first-time buyers, home movers and people who are remortgaging on their existing property.
Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665 and is an Introducer Appointed Representative (FRN 610689) of the following:1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance, who are authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd. 2. LifeSearch Partners Limited (FRN656479), for the introduction of Pure Protection Contracts and Private Health Insurance, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts and Private Health Insurance Contracts. LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386.3. HUB Financial Solutions, for the introduction of equity release advice, who are authorised and regulated by the Financial Conduct Authority (‘FCA’) to provide advice and guidance on financial products for those who have retired or are approaching retirement (FCA Firm Reference Number: 455713). HUB Financial Solutions is registered in England and Wales to Enterprise House, Bancroft Road, Reigate, Surrey RH12 7RP, company number 05125701.4. Alan Boswell Insurance Brokers Ltd (FRN 301), for the introduction of non-investment landlord insurances, who are authorised and regulated by the Financial Conduct Authority to provide advice and arrange insurance contracts. Alan Boswell insurance brokers Ltd is registered in England at Prospect House, Rouen Rd, Norwich NR1 1RE, company number 02591252.Other financial services:Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ. London & Country are authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.We do not make, nor do we seek to make, any recommendations or personalised advice on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners. If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer. Please note that a link alone does not constitute an endorsement by Which?.
