Beware: existing customers always pay higher interest rates

Investopoly · Jul 5, 2022 · 13m

Banks will usually offer higher interest rate discounts to new customers to win their business. But, of course, the banks never offer these higher discounts to existing customers, unless they ask for them. Whilst this has always been the case, it is noteworthy that interest rate discounts have increased substantially over the past 10 years. This means the gap between what interest rates existing and new customers are being charged has also widened to the extent that it is becoming more important that you (or your mortgage broker) review your loans at least annually. New customers are enjoying…