Here we take a look at what loyalty tax is, why loyalty to your bank can cost you thousands, and how you can avoid paying it.
What is a mortgage loyalty tax?
The term ‘loyalty tax’ is given to describe the price you pay for your being loyal to your bank or loan provider. It happens when new customers are offered a lower interest rate while long-term clients pay are still paying the much higher interest rate.
If you’re paying a loyalty tax it means you’re paying more than necessary and could be entitled to savings.
How do I find out if I’m being charged a loyalty tax?
Your local Mortgage Choice broker can help you know if you’re getting a great deal on your home loan.
Mortgage Choice brokers do all the legwork for you when it comes to comparing your loan against a wide panel of lenders and ensure you're getting the loan that’s suitable for your needs.
Your local Mortgage Choice broker will fight to get you the best rate, so any potential savings can go back where they belong - in your pocket.
So, if your current lender won’t budge on your rate, they can let you know in a matter of minutes if you could get a better deal elsewhere.