Banks charge existing customers more than new customers

according to this article by Charlie Weston in today's Indo.

EBS does not publish a list of fixed rates for existing customers.


It also admitted that it was charging on average 1pc more to existing customers who want to fix their mortgage than to a brand new customer.

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I suppose that this is what is meant by the "mutuality dividend".

EBS borrowers are full members of the Society and should attend the AGM and make their feelings on this known.

Brendan

I'm not surprised at all. I posted a thread about this last year. EBS have been doing individual deals with customers on interest rates for years. I have a tracker +0.9% on my PPR which I'm delighted to have but I have friends on anything from +0.7% to +1.5% on similar mortgages taken out around the same time.
As interest rates came tumbling down last year I had to write to them numerous times to lower my variable Buy to Let rate and eventually got 4.23%. I believe if I sat back I'd have got nothing. From conversation with some work colleagues their buy to let rates range from 3.5% up to 5.0%.
Do a survey here and you'll see very quickly.
PPR '02 ECB +0.9%
Buy 2 Let '04 4.23%
Rgrds J.

I believe that all lenders, except AIB, charge existing customers higher fixed rates than new customers.

The EBS is unique in that it does not publish the rates it charges its existing customers but decides them on a case by case basis.

From yesterday's Sunday Times by Niall Brady

If lenders insist on increasing rates, they must soften the blow by by giving fairer fixed rates to existing customers,ending the two-tier pricing that robs them of the best fixes.

Permanent TSB is one of the worst culprits.It has a good five year fix of 3.7% for new customers borrowing less than 50% of the value of their homes.Existing customers, however, are charged 5.75%.

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