Likelihood of ERC waiver/reduction to keep business?

TomPill

I've got a fixed-rate mortgage with C&G at an interest rate of ~6%, with 2 years left to run on the fixed term, and an ERC of about £3.5k. Looking at the various mortgages I could get now, I could save some (though not a massive amount of) money by switching to a different mortgage provider and taking the hit of the ERC.

What do you think the likelihood is of me persuading C&G to switch me on to one of their new lower interest rate fixed mortgages, and waiving/reducing the ERC in order to keep my business? Has anyone tried anything like this before?

I don't know how amenable mortgage companies are to some good old-fashioned haggling

beecher

I'd think your chances are zero. From their point of view the ERC is likely to make them more money than keeping your business would.

maninthestreet

You don't get rewarded for loyalty in the financial industry.

opinions4u

maninthestreet wrote: »

You don't get rewarded for loyalty in the financial industry.

In what way is it loyal to back out of a contractual agreement?

In this example the customer's loyalty is lacking.

Mrs_Bumble

I don't rate your chances, sorry, even if you take the business away they make money so nothing in it for them to waive is there?

Wutang_2

maninthestreet wrote: »

You don't get rewarded for loyalty in the financial industry.

I think it is the opposite. You stay loyal by paying your pre-agreed monthly payments and in return you have a mortgage.

dunstonh

You don't get rewarded for loyalty in the financial industry.

It works both ways. Consumers are not loyal anymore either.

What do you think the likelihood is of me persuading C&G to switch me on to one of their new lower interest rate fixed mortgages, and waiving/reducing the ERC in order to keep my business? Has anyone tried anything like this before?

Not a hope. Who is going to pay C&Gs charges for you exiting if you don't?

The only lenders waiving ERCs are those that want shot of you. That is limited to a small number of sub prime lenders who feel the cost of waiving it is better than the cost of the debt going bad. A situation that C&G are not in or likely to be in.