Haggle down the cost of your existing mortgage

MSE_Martin

Haggle down the cost of your existing mortgage
Cut mortgage costs even if you're locked in?

A MoneySaver recently fed back to me how he asked for a rate reduction on his fixed deal (during the lock-in period), and got around 1% off, that's £80 a month cheaper per £100,000 of mortgage.

There's no way to tell how widespread this is, and it’s UNLIKELY to work for most, yet there's no harm trying.


What to do...

• Check your current contract. Don't assume you’re automatically locked in; some fixed and discount rate deals are penalty free, meaning you can leave at any time. And those paying standard rates are usually free to move anyway (see the remortgage guide or speak to a whole-of-market broker).
• Be polite but have an argument ready. If you are locked in, when you call to haggle, check what your lender currently offers new customers, and prepare an argument for why you should get a reduction. E.g. “I’ve been a loyal customer for years, but my rate's way above everyone else's, what can you do to help?”
• Use the 'should I ditch my fix?' calculator. If your lender won’t let you move penalty free, and you’re on a fixed rate, it's UNLIKELY to be worth ditching, though you can do a rough calculation with the ditch my fix? calculator.

What not to do...

• Don’t lock in when there’s little time left. Those who get a reduction close to a mortgage deal's end may be missing out on the opportunity to see what better deals are available elsewhere, and thus potentially paying over the odds. See the cheap mortgage finding guide for full info.
• Don’t forget fees. If you're given any options, always check whether there will be penalty fees for leaving and setting up a new deal, then see whether with those incorporated you'll still save.
• Don’t think cheaper is always better. If your existing lender offers you a new cheaper rate with a longer lock in you may be trading in short-term gain for long-term pain. It may be better waiting until your deal ends and you’re free to move.

Don't forget to feedback & share info. If you get anywhere, or discover a good technique, please post here to let us know.


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Gorgeous_George

I tried to haggle mine up.

I'm currently paying 1.24% on a lifetime tracker and asked about mid term fixes. I was only offered the same deals as new borrowers would be offered so I decided to stick with what I have.

My tip. If mortgage A comes with a £1,000 arrangement fee and mortgage B with a £200 fee, just subtract £800 from the total advance of mortgage B. Probably a rubbish tip but it works for me.

GG

Kavanne

I am on 1.25% (BOE + 0.75%) tracker and I called my lender to haggle but the lowest rate they would offer me is their standard rates atm which start from 6.3%!! lol

PeteW

Would be great if people could let us know what lenders they are haggling with. Would certainly be interested to hear if anyone has any success with mine (abbey).

MORPH3US

Would of been useful if Martin could have said what bank the original haggler was with.... anyone tried HSBC yet?

gener8or

Do you think this will work with Halifax, currently locked in at 6.09%

_Andy_

Lenders don't 'haggle' - some lenders do offer certain rates or waive fees for existing customers but you don't 'haggle' on mortgages.
I can see plenty of people making a fool of themselves on the back of this.

gener8or

gener8or wrote: »

Do you think this will work with Halifax, currently locked in at 6.09%

They didn't want to know apart from ER charges

_Andy_

gener8or wrote: »

They didn't want to know apart from ER charges

Why would they? You agreed a deal you thought was fair at the time and are now wishing to get out of that contract. There is no commercial sense for them to let you do so.

special_k83

I'd like to know if anyone has had any success with this...I am intrigued.

dunstonh

I have never known a lender haggle on mortgage terms.

There are a couple of sub prime lenders that are encouraging people to leave at the moment by waiving ERCs and even offering to pay some of the mortgage.

Some lenders, like Nationwide, even refuse to allow you buy yourself out of the current deal to go onto another with them. They will let you buy yourself out but you have to remortgage instead.

I would be interested to see which lenders people have had success with. That said, if you read what Martin has posted, its less about haggling but more about reviewing what you have compared to what is available. I'm not sure the thread title really matches the content of the post.