Post Office better offer

dcouponzzzz · 23 June 2016 at 8:41AM

Hey guys

So... currently I'm 5 months from the end of a 5 year fixed rate mortgage with the Post Office (Bank of Ireland), on 4% and paying £608pcm.

Post Office currently have an offer for 75% LTV 2 year fixed rate 1.33%, pushing the price down to £353pcm... quite a significant difference.

Product fee is £2k, valuation £250.

So if anyone has experience of negotiating a renewal of contract onto a new deal...
1. Can I request to be moved to the new offer and they'll retain my business for 2 years, but ask to start now instead of in 5 months?
2. Will they be flexible on the product cost considering I'm an existing customer?
3. Could they possibly waive the 5% buyout fee on my existing contract?

I know this is all extremely optimistic, but if you don't ask you don't get right !

Thanks in advance

kingstreet · 23 June 2016 at 8:51AM

Is that rate for existing customers not moving home? It looks like a new business rate and the one offered to you won't be as good.

Customer retention products are normally offered with and without fees, so you pick the one which suits you best. They won't give you the better rate and waive the fee because you are an existing customer.

No. They won't waive the ERC. They may allow you to transfer to a customer retention product a few months earlier, but probably not five.

You need to call and establish what customer retention products are open to you and when. I am not confident you will get much out of BoI they are not particularly generous to existing borrowers in my experience.

dcouponzzzz · 23 June 2016 at 9:35AM

That rate was when selecting 'remortgage' in the MSE mortgage tool Kingstreet, I would hope that includes remortgaging with the same company!

kingstreet · 23 June 2016 at 9:44AM

No. You are not remortgaging.

You are looking for customer retention products, those for existing borrowers not moving home.

A remortgage is a new mortgage with a new lender to repay the old one and the borrower is new to that particular lender. It's called a remortgage because the deed tying the property to one loan is cancelled and another drawn in favour of the new lender.

dcouponzzzz · 23 June 2016 at 10:00AM

I consider myself schooled

thanks for the info! I'll speak with BoI this afternoon and post when I have

Post Office better offer

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