Can you negotiate with Providers?

retailinsider

I'm currently looking at paying the ERCs(10k) to get out of my 5.69 5yr fixed deal. However I can get onto a 4.69 5 yr fixed which will save me 2k a year, which means no benefit to the change.

What i am wondering is if anyone has managed to renegotiate the ERCs, its a long shot but worth a shout?

uzubairu

If there is no benefit to the change, I wouldn't bother.
I doubt your bank will budge on the ERC.

co123456

When my mortgage ends next year, there is a release fee of approx £250.
I'm thinking of asking Northern Rock to waive that. I've no right to the £250 of course however I could work things so that it'll cost Northern Rock more than £250 in administration to keep me as a customer. Phone calls, small coin cash deposits, in-branch appointments.

I once attended a negotiating course where the trainer was self employed. He remarked that "everything is negotiable..... except my fee"

dimbo61

Overpay your mortgage with the £10,000 you were going to pay out in ERC
either in one lump sum or monthly.
Or is it a case of you borrowing an extra £10k to get yourself out of what may turn out to be a damm good deal.
Overpay, overpay and overpay ( check what limits you deal has ! ) its the only way to become MF.

StuartGMC

Have to agree with Dimbo (yet again :rotfl:) reduce the capital owing, you pay less interest overall, have less debt and more flexibility in future planning options (balance of work-life and salary required to service the debt) or simply an enhanced life-style etc.

Seems little point paying the ERC, just focus on clearing the debt with OPs.

We overpaid by £100 or so a month from mid-1990s and it wasn't entirely clear what the impact was at the time, but despite the less favourable climate then (8.5-9% interest rates, wife going part-time as daughter came along etc) by 2006 it cut over 3yrs off duration when we moved to the offset. Now at the end of 2008 it looks like we can pay off 9yrs and 8mnths early (due Oct 2019 originally).

The impact.... well excluding reduced costs as we won't need the life cover and redundancy (about £5k alone), less cost in terms of interest no longer incurred from capital etc means we can save for 2016 when daughter leaves schooling at 18yrs old and we'll have money each month to support her too.

Options of course then mean I could downshift or we can treat ourselves to some more luxury (replace the S-Type with an XF )