Haggle down the cost of your existing mortgage

payless

yep.. as you say - likely the person mentioned is either a windup merchant OR someone not tied/ coming to end of tie OR erc was charged

kevrex

If interest rates go higher than my fixed rate and the bank ring me and ask if I could pay a bit more? I wonder what my response would be!:mad:
same as theirs if I asked now for a rate reduction I imagine.
Is it April 1st

chocwom

MSE_Martin wrote: »

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

Am I being crazy by gambling a remaining 2 years fixed at 5.19% and £2500 get-out-fees to take a 10 year fix at 5.39% now? My thinking is two-fold- I will want a longer guarantee and my "reading of the tea leaves" (ie listening to most people's predictions about what interest rates will be like in 2 years makes me think fixing now is worthwhile.
I know its a gamble but anyone like to work out what interest rates will have to rise to to make it a good bet?

luckyfool

FJQ wrote: »

Am I being crazy by gambling a remaining 2 years fixed at 5.19% and £2500 get-out-fees to take a 10 year fix at 5.39% now? My thinking is two-fold- I will want a longer guarantee and my "reading of the tea leaves" (ie listening to most people's predictions about what interest rates will be like in 2 years makes me think fixing now is worthwhile.
I know its a gamble but anyone like to work out what interest rates will have to rise to to make it a good bet?

Not necessarily. How big is your mortgage?

chocwom

Less than the average

luckyfool

I just mean that £2500 in erc's is alot of money on a £50k to 100k mortgage, and in that scenario especially if at the lower end I'm not convinced that it makes sense. If it was a £250k mortgage then it only works out at £250 per year on a 10 yr fixed rate, and would add only 0.10% to the effective rate on your 10 yr deal, i.e. turning a 5.39% 10 yr deal into a 5.49% deal. On a £50,000 mortgage it adds 0.50% per year, making the effective rate more like 5.89%.

chocwom

That's very very impressive and helpful- I am trying to work out how high rates realistically may go- but you've helped me quantify it

_Andy_

FJQ wrote: »

Less than the average

Why be so vague about it?

chocwom

....but your maths has intrigued me- 5.6%-ish is less than many rates even offered now- or what have I missed out? And I know its crystal ball gazing but anyone predict base rate in 24 months?

chocwom

_Andy_ wrote: »

Why be so vague about it?

...only because the exact sum isn't the issue here- its more whether the whole issue of "fixing now"- which is commonly held- should be one considered by more than just those who are presently coming to the end of their fixes...