Loyalty, in and of itself, has become quite an advertisement tool for banks looking to benefit from their current customer base. Customers like to shop around, especially for an item that is as important as a mortgage. They typically don’t rely on their bank to offer the best deal on banking needs, aside from the routine savings or checking accounts.

Banks are out to change that way of thinking. They are planning new ways to market their products to their current customers and giving them reasons to stay at home, so to speak, and consider them for a mortgage or remortgage. There are plenty of brokers, and other lending institutions vying for their pound. Banks are simply trying to cross-sell their services to their own customers.

The encouragement to have a customer’s salary paid into a bank to cover their mortgage payment helps them tie in to a stronger, more trusting relationship with that bank. This also allows banks to sell additional services, aside from mortgage products, like insurance services.

Another benefit to banks offering and providing other products to their current customers is the ability to discover more information about their financial capabilities.

One of the latest high street banks to offer "loyalty" type mortgage rates to its current account customers is Barclays. It, along with HSBC, NatWest, Santander, and Halifax are all lenders now offering cheaper, "loyalty", mortgage rates to current account customers.

While it may improve the relationship between the banks and their customers, several other opportunities for mortgage lending or a remortgage exist. Customers still need to search outside their bank to make certain they are seeing the best deals.