Should I complain about rate offered only to new customers?

[Noel C]

I am currently remortgaging a BTL with Hanley Economic building society. The property is ex-council of non-standard construction made of large panel system slabs, so is difficult to remortgage

 

The building soc is offering me 5.19% as an existing customer, but has a rate of 3.99% for new customers. Both are 2 year tracker BTL products.

 

I've searched the external market, and cant find anyone else to take the mortgage, so have gone for the 5.19% rate.

 

Do I have grounds to complain, on the basis that offering a rate to new customers doesn't treat existing customers fairly?

[astonthemortgageguy]

There's no harm in trying, but from a broker perspective, it's not unusual to see the rates offered to existing customer higher than the new customer rates.

[Noel C]

I may well give a complaint a try. 

The FCA have already banned car and home insurers from offering new customers discounted rates at the expense of existing customers. 

So there is some precedence here. 

The difference is worth north of £2k in terms of interest rates, so it is likely worth a letter of complaint and then onto the FOS.

[merccarcade]

It sounds like you're in a tough spot with your remortgage and the challenges of the property's non-standard construction. And, I can understand why the difference in rates offered to new vs existing customers may feel frustrating. Have you considered reaching out to a Mortgage Broker Leeds? They may have a different perspective and access to options beyond what you've been able to find on your own. It's worth a shot to see if there are other options available to you. Good luck with the remortgage process!