Haggle down the cost of your existing mortgage

edited 8 July 2009 at 6:36PM in Mortgages & Endowments
47 replies 27.1K views
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  • paylesspayless Forumite
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    dunstonh wrote: »

    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.

    My thoughts exactly - but just read the "fuller" article- basically as above but with this at start
    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.

    now I do wonder why a lender would offer this ???, unless perhaps locking in for a longer time ( when close to end of existing deal anyway ) and/or charging the ERC ( capitialised to make the payments look cheaper)

    Think if we take the comments seriously we need more info.
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Seemed like a good idea, so I attempted this with Northern Rock (UK taxpayers do own this). Not a chance.
    They just kept referring to the ERC should one wish to change the mortgage deal. I guess you take your chances when "locking in" at fixed rates, I have 12 months left at 6.39%, so not as fortunate as some with low % rates or trackers.
    One thing for certain, NR will not retain my business at the end of this.
  • michaelsmichaels Forumite
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    I would have thought lenders would be very keen to get people off the very low base rate trackers - after all they must rate their current much higher tracker and fixed deals as being equally profitable so the low rate trackers must be relatively more expensive and thus it would be worth the lender offering a cheaper than new customer rate fix to try to get customers off the low trackers/svrs.
    I think....
  • Seemed like a good idea, so I attempted this with Northern Rock (UK taxpayers do own this). Not a chance.
    They just kept referring to the ERC should one wish to change the mortgage deal.

    That will be the one you agreed to then.
    Why shouldn't they refer to it? It's part of your mortgage contract.
  • CandleFanCandleFan Forumite
    94 Posts
    To add to possible reasons to haggle/review mortgage - I felt put under a bit of pressure when I remortgaged last year with Halifax (fixed 10 year rate, 5.79%) as they kept stressing - this deal could change and giving deadlines like 'tomorrow by 6pm.' I'm certainly thinking of using this if I try to re-negotiate. I know some will say, that they were only advising me, of the facts, etc. - but you had to be there - i really felt pressured.

    I don't understand why anyone would defend the banks either, it's business & the only person who will look out for you is you! - there is no harm in attempting to re-negotiate even after you have signed up - if you don't ask you don't get! If they say no, fair enough, but at least you will have tried to save yourself some money.
  • I often think Martin Lewis has created a monster
  • MSE_MartinMSE_Martin MoneySaving Expert
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    I think there's some confusion here...

    I can't see the problem for asking for a reduction in your rate especially as it has been done. There is a problem with being annoyed if it doesn't happen. And i think the note is very plain people must assume that rejection is the likely outcome.

    As for the difference between haggling and asking for a rate reducation - its purely semantic. The point is there's no harm asking if your lender will drop your rate... and this note is to get people to have a go and see if there's a widespread pattern (or simply the one person was a one off).

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • paylesspayless Forumite
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    as per my post I can't see why a lender would offer a new lower rate ( and waive erc) in fact I would be annoyed if state backed lenders were doing it!
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Wakey2008Wakey2008 Forumite
    149 Posts
    Martin

    Lenders do not drop rates willy nilly, especially when they are finding it difficult to make a profit on rates as it is.

    Yes you can get a new deal if you are not tied in or are willing to pay the erc but lenders do not just stick their finger in the air and come up with a rate just because a customer wants one.

    The person was a one off and may have even confused getting a new deal (because they weren't tied in) and actually haggling.

    As Andy pointed out, lenders do not haggle. I've worked for five of them and while it used to be possible to get a bit of flexibility on fees etc at one time, those times have gone.

    In fact a lot of lenders would rather the customers just leave now rather than give them something else as that way they get their money back.

    This thread proves what I've always thought, Martin you are clearly just a journalist and are not in any form an expert in financial services.
    I am a Mortgage Adviser and Freelance Journalist
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Wakey2008Wakey2008 Forumite
    149 Posts
    payless wrote: »
    as per my post I can't see why a lender would offer a new lower rate ( and waive erc) in fact I would be annoyed if state backed lenders were doing it!

    Bradford and Bingley are waiving fees to customers who are leaving so that they can get the funds back while the company is being wound down. No lender is waiving ercs to give customers a better deal that I am aware of and if they are then they are very stupid and will probably be the next to go to the wall.
    I am a Mortgage Adviser and Freelance Journalist
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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