Banks offer preferential deals for existing customers

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By Paul Davies
Know Your Money Editor

In the current economic situation, it may prove important to shop around to find the most preferential financial products available.

With that in mind, consumers could like to be aware some of the best deals on offer are exclusively for existing customers.

One such example is Barclays, which has announced it is cutting the cost of its lowest rates available through its mortgage arm Woolwich.

It recently revealed Woolwich mortgages will see a rate reduction of up to 0.34 per cent on a variety of products, all of which have a loan to value of up to 70 per cent.

The loyalty lifetime tracker mortgage has been slashed to 2.48 per cent and is available to existing current account customers, while a rate of 2.99 per cent is available to non-Barclays customers.

Existing customers can also benefit from a cut to offset tracker mortgages, which now have a new rate of 2.79 per cent.

Changes to the cost of Woolwich fixed rate mortgages include its five-year fixed rate being lowered by 0.15 per cent to 4.29 for existing customers, or a standard rate of 4.49 per cent.

And for those not already banking with Barclays, the cheapest two-year fixed-rate mortgage is now 3.15 per cent.

Commenting on these changes, Andy Gray, head of Barclays mortgages, said: "What we are seeing as we approach the final quarter of the year is a positive healthcheck for the mortgage market. Rates are competitive and Barclays is very much open for business and looking to lend."

In addition to the lower rates, Barclays is still continuing to offer a 'drop-lock' facility to its new tracker and offset mortgage customers.

This allows people to choose a tracker rate now and switch to a fixed rate in the future, without incurring early repayment charges.

To take advantage of the range of Barclays mortgage deals customers need to have held a Barclays current account and deposited a minimum of £800 during the previous three months before making their application.

A better credit card deal?

It's not just mortgages that are being made available at a better rate for loyal customers, credit cards are getting in on the act too.

NatWest and Royal Bank of Scotland (RBS) are among latest banks to limit one of their best credit card deals to existing current account holders only.

This marks what seems to be a growing trend in the credit card market with almost 50 deals now reserved exclusively for existing customers, compared to just 22 last September, research firm Defaqto has revealed.

Although a number of people may not be willing to switch their main bank account just to qualify for some of the offers, there are still other good deals available.

Cash-savvy consumers may be able to compare the market and find equally competitive deals that are available to everyone.

Both RBS and NatWest have removed availability of their Platinum credit card for non-current account holders.

The card offers a 15-month zero per cent balance transfer offer and a 2.9 per cent admin fee.

In comparison to this, MBNA Platinum Plus provides 16 months with a slightly higher charge of three per cent, while Barclaycard also offers 16 months but with the same 2.9 per cent rate used by the other banks.

It may be wise to take a look at what is currently on offer across the board. So why not make use of our credit card comparison tables to ensure you get the best deal for your money?

Important Notice
This guide is intended for general information only and is not intended as, and does not constitute, any form of advice, recommendation or endorsement by us of any particular product(s) or services and you should rely on your own further research and professional advice in relation to your specific requirements and circumstances before purchasing any products or services. Use of this guide is subject to the Terms of Use of the KnowYourMoney site.