Tracker mortgage holders want reward

Britannia finds consumers want a reward for staying with provider.

10:37 29 April 2005

Consumers who have tracker mortgages believe that they should be rewarded for their loyalty to the provider, new research reveals.

A study carried out on behalf of the Britannia Building Society discovered that around 65 per cent of British homeowners expect that if they stay with their existing mortgage provider they should be rewarded.

Consumers who do not feel that they are being rewarded sufficiently were more likely to switch provider, the survey also revealed.

Tim Franklin, managing director of member business for the Britannia Building Society, said: "Moving mortgages is a growing trend, as it becomes easier to do and is more widely promoted.

"Some lenders offer special offers too, so that homeowners can sometimes make a switch with minimal cost to themselves and with a large cost saving overall. Customers are now much more knowledgeable about the options available to them."

Mr Franklin's advice to mortgage holders is to ensure any new deals are available to existing customers, to ensure the rate is competitive and that they can select the type of mortgage they feel is right for them and look into the possibility of receiving any other benefits from their mortgage provider.

He also suggests ensuring interest on the mortgage is being calculated on a daily basis and to shop around for buildings insurance.