Halifax Ends £300k Mortgage Prize Draw – But Are There More Wins Ahead?
money
2024-08-06 02:38:51
Thousands of Halifax
mortgage customers
will soon lose access to a once-lucrative extra, as the bank winds down its popular monthly mortgage prize draw this September.
The scheme, which launched in 2011, gave customers the chance to have their mortgage paid off in full – up to a £300,000 cap – alongside 100 runner-up prizes of £1,000 each month.
Savers with qualifying accounts
were also entered into a separate draw, with top prizes of up to £100,000.
But both draws are being scrapped in just a few months’ time, and, while Halifax hasn’t publicly promoted the closure, it has quietly confirmed to customers that entries will cease from 30 September.
Industry experts believe the draw’s closure comes down to value, both for Halifax and its customers.
Now, Halifax is pulling the plug, are there any other lenders offering the chance to win big through everyday banking and are these deals as good as they seem? We spoke to a number of experts to find out.
Are there any similar schemes left?
If you like the idea of being in with a chance of winning a significant cash prize, without buying tickets, an alternative is buying Premium Bonds, which work in a similar way.
Every £1
saved into Premium Bonds
has a one in 22,000 chance of winning something, with the maximum prize being £1m every month.
There are some other banks which offer similar services for customers, but it is not thought that any other major providers offer mortgage-related wins like the Halifax prize draw.
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Kent Reliance, part of OneSavings Bank, runs a monthly prize draw for both savers and mortgage customers. Anyone with more than £100 in savings or £1,000 outstanding on a mortgage is automatically entered, and prizes range from £100 to £1,000 each month.
Credit unions, which are member-owned, not-for-profit organisations serving specific communities and sectors, meanwhile, offer an entry-level version of the prize-draw model via the PrizeSaver scheme.
Customers who save with a participating credit union are entered into a monthly draw with some offering top prizes of £5,000.
Entry costs, for many, are just £1 in savings per ticket – capped at 200 tickets – but winnings are small, and participation is limited to certain unions. You can check eligibility at
prizesaver.co.uk
.
Are prize draws worth it?
Most experts made the point that it’s better to find a good deal with a low mortgage rate than focus on deals that offer prize draws.
David Hollingworth of L&C Mortgages said: “As for occasional prize draws, they could be a major boost, but the chances of a win can be slight compared to the chance of getting a mediocre deal if you fail to shop around properly.”
Property buying expert Jonathan Rolande called schemes like the Halifax one “gimmicks”, adding: “They should not be the driving force behind investment decisions.
“Personally, I would rather choose the best product and look on any incentives as a welcome added extra, but it wouldn’t make me choose that product by itself.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, reminded savers that the Halifax prize draw isn’t ending until September, so there is still time to take advantage.
“It will be disappointing news to consumers to see the final draws are scheduled for September 2025, but there are some other alternatives to consider.”
ClearBank’s Chip also offer a prize draw for savers that have invested at least £10, with up to £10,000 up for grabs. And Family Building Society offer a huge £50,000 for winners its draw. For this one, savers need to invest at least £10,000.
Ms Springall added: “The NS&I Premium Bonds could also be a good choice for savers who want to enter a prize draw as an alternative, and they are quick and easy to open with just a £25 deposit.
“NS&I are a trusted brand, and many will flock to them for this reason. However, Premium Bonds do not pay interest, so that is worth keeping in mind.”
A spokesperson for Halifax said: “Our customers’ expectations continue to change, and we are taking the opportunity to look at how we can reward customers in different ways in the future.
“Our mortgage prize draw has made a huge difference to thousands of customers, with over £14m awarded since our first draw in 2020.”
