Haggle down the cost of your existing mortgage

edited 8 July 2009 at 6:36PM in Mortgages & Endowments
47 replies 27.1K views


  • savemoneysavemoney Forumite
    18.1K Posts
    Part of the Furniture 10,000 Posts
    I find the whole re-mortgage thing so confusing

    For instance we changed houses in Feb 07 to a 2 years fixed deal at 4.69% with First National (Ge money )this expired in March 09 so we have pay 2.39% on variable. I think its 1.89% above Barclays base rate

    Now looking for a fixed at least 2 maybe 5 year deal but because rates are so low and its only a matter of time before they go up we have to factor in extra costs like product cost etc. As we dont own a lot in todays value house we bought was 150k we owe around 57k its seems less incentive to move at present and you have to way up additional costs
  • unite79unite79 Forumite
    392 Posts
    Folks - Brittania have been contacting existing clients offering them new long term deals - Ie Clients are 2 years into a 3 year deal - They then offer them a 5 year fixed at a better rate tehn they were on - The reason to aviod a Losing them, and B to get them away from a low rate tracker!
  • paylesspayless Forumite
    6.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Interestting thought if current fixed deal has a low rate tracker reversion deal, offering a swap to a new deal with a "better rate" but not so good reversion ( like NW new deals)
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • owitemisermusaowitemisermusa Forumite
    951 Posts
    Part of the Furniture Combo Breaker
    TBH, I don't see why anyone would attempt to shoot down this thread or Martin himself.

    It's just a TIP, if you feel like trying it then go ahead, if not, keep to yourself and enjoy your life as you've been doing until this thread/tip came along.

    The point is that it may have worked for someone - why the lender did it is not really of interest to me, all I/we want is to save money.

    All IMVHO of course...
    Tough times never last longer than tough people.
  • paylesspayless Forumite
    6.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    As far as Brit Bs concerned- I know things may differ with coop- but seems (according to press)
    Brit have a fairly high level of wholesale funding, ( and not sure this takes into account Verso/platform lending books) and together with a recent credit downgrade means I would have thought they would not be that sad to see redemptions
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Doc_NDoc_N Forumite
    7.6K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Anyone had any dealings wth the Leeds? One of my kids has a 25 year fix with them at 5.99% with various 'get-out' windows.
  • edited 27 July 2009 at 5:02PM
    clairey22clairey22 Forumite
    169 Posts
    edited 27 July 2009 at 5:02PM
    dunstonh wrote: »
    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.

    Hi can I ask a question on what this means? (sorry i'm new to all this!). Does it mean you cannot move to another product from Nationwide you have to move to another lender?

    I am 1 year into a 6.10% fixed deal with nationwide and am wondering if I should look for a new deal. I was planning to ask Nationwide what my options are. I know there is a max 5K exit charge if I leave within the 5 years.

    My purchase price last year was 205K but I had a big deposit so the mortgage was circa 147K.
    is it worth me looking to move to another deal?

    Thanks in advance
  • Joe_BloggsJoe_Bloggs Forumite
    4.5K Posts
    You have interpreted the wording correctly. If you got a mortgage for 147K on a property that was worth 205K a year ago then that was a loan to value of 72%. Since house prices have fallen say 15% in a year your LTV would now be around 85%. How long have you signed up for the Nationwide fix ?
  • clairey22clairey22 Forumite
    169 Posts
    Thanks joe_bloggs, I only just saw your reply.

    It is a 5 year fix (4 years left). Looking around at the other deals, it seems you have to have atleast a 75% loan to value so I think I am stuck with my current deal then.

  • I saw this topic mentioned in the weekly e-mail some time ago, and it's played on my mind ever since.
    Well, this evening, I called my mortgage provider, Abbey, to discuss what options were open to me.
    I remortgaged to Abbey last September on a 3 year fix at 5.99%, with a 3% early repayment charge.
    They've just let me remortgage again to a 2 year fix at 3.99% :D

    I have had to pay the ERC, but, if I stayed with them, they offered to reduce the ERC by 20%.
    Over the remaining life of the mortgage (another 21 years), I save money- roughly £4k- even with the ERC. Plus, I've cut my monthly mortgage payment by £140 a month. Well, actually, I'm keeping it roughly the same, reducing the term to just over 19 years, and saving even more.

    Remortgaging may not work out best for everyone, but it's looking pretty good for me!
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