The issue of a lender offering existing savings customers incentives if they were to apply for a mortgage, such as enhanced criteria or faster applications was mooted as a response to the heightened awareness of risk within the financial services sector.
It was argued that if these lenders had an existing history with potential borrowers, they would have a greater idea of how great a credit risk they were and, if the history was positive, they could offer them special deals to entice that customer onto their mortgage book.
However, the response from lenders was broadly negative to the idea.
Paul Fincham, senior media relations manager at Halifax, commented: “It would be feasible to offer direct customers special deals but this would be no different to special deals we would offer the wider broker market. We have promotions for each channel which respond to their needs but criteria would remain the same.”
Iain Laing, head of mortgage risk at Abbey, said: “If a customer has savings with Abbey and this account has been open for some time, then this will positively impact their credit score. Savings held at another bank would make little difference, as banks do not share information about customers’ savings.”
Laura Hogg, senior press officer at Norwich & Peterborough Building Society, said: “We offer savings customers a free valuation if they then take out a mortgage with us and for existing customers who are moving home, we offer a number of incentives. However, this is just standard procedure.”
