Haggle over arangement fees?

mercuryblonde

Hello

My fixed term mortgage is coming to an end with Halifax, currently they would charge over 900 pounds "arrangement fee" for me to go onto a five year fixed deal with them at 4.44%.

I can get the same rate elsewhere with an arrangement fee of 499 pounds but would like to stay with the halifax for the sake of convenienece (the convenience is not worth 500 pounds though!!)

So the question............... has anyone any experience of negotiating the arrangement fee, can this be done?

I am thinking that the cost of them changing their system could not cost them that much, and that they would still be making money from me (via interest) if I stay with them.

Is it worth asking or would this be 'bad form'?

Oh, as an aside, I would not be going through a broker and so they would also have no commision to pay.... could this work in my favour?

unite79

I would place a few quid on the answer being No, but as this is a money saving forum, surely its worth a phone call!

theartfullodger

Am I guessing correctly that it is the fixed-rate period that is coming to an end?? If so ask Halifax what the mortgage would go onto, probably their SVR or "Standard Variable Rate" which I think from 1st Feb was 4.5%.

So, if you can bear being at risk of rates going up, see what Halifax offer if you "do nothing" - i.e. go onto whatever their standard rate is.

Cheers!

Lodger

theartfullodger

It wouldn't bother me if someone thought my asking for a deal was "bad form" or not. Stone me, the Halifax is not the membership evaluation of the local Golf Club! (Not that I'd care what they thought either). Ask them & see what they say? We (The people, UK citizens) own most of them anyway now so you's a shareholder effectively

However I kinda doubt you'll get a new deal elsewhere for £499 and no other fees, charges, surveys, arguments about valuation being too low... etc. £5 to your nominated registered charity if I turn out (when you have the new mortgage) to have been wrong...

Cheers!

Lodger

koexelek

unite79 wrote: »

I would place a few quid on the answer being No

so would I.

A lender won't negotiate on an arrangement fee in principle. They tell you to take it or leave it, and will not care less if you go elsewhere.
A lot of lenders are glad to get rid of their borrowers these days

_Andy_

Ask as much as you want, but no they won't 'haggle'.

mercuryblonde

You are all correct......... I phoned them up and no negotiation. (despite a well reasoned arguement on my side, I do understand that it would set a dangerous precedent for them!)

I just needed a nudge that there was no harm in asking.

Thanks for your time and responses :T

dunstonh

I am thinking that the cost of them changing their system could not cost them that much, and that they would still be making money from me (via interest) if I stay with them.

How do you know that they will still be making money from you? The profit could be in the charge?

somewhereweknow

I've just tried exactly this with my mortgage provider as my fixed rate if coming to an end and i want another fixed rate with them, but the rates elsewhere are better. Even with the threat of me going elsewere they said NO. Their loss.

dunstonh

Even with the threat of me going elsewere they said NO. Their loss.

Its not their loss. In fact, its quite possibly their gain.

Lenders are quite keen to get rid of many legacy mortgages and taken on new lending that is viewed with a tighter criteria. That improves the quality of their mortgage book and helps them get cheaper financing. Plus, with many fixed rates, the profit is largely in the fee charged up front. So, there is little incentive for them to waive it.