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Had a phone call from my Lender...
ginandtonic1988
Posts: 259 Forumite
I had a phone-call from my Lender today I am three years into a five year fix and they offered to fix me in for another five years with no charges. Is this a sign of the times, are banks going to start looking after their exisiting good customers rather then chasing new custom and letting the new ones have the best rates??
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Umm, what rate are you on and what did they offer?
Timeo danaos et dona ferentesNo reliance should be placed on the above! Absolutely none, do you hear?0 -
They have offered 5.34% for 5 years.0
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ginandtonic1988 wrote: »They have offered 5.34% for 5 years.
If they're proactively trying to lock you in to another 5 years at that rate, it's pretty clear they don't expect rates to rise any time soon.
They're probably worried you'll jump to a base plus 2% tracker, and cut your costs in half.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »If they're proactively trying to lock you in to another 5 years at that rate, it's pretty clear they don't expect rates to rise any time soon.
They buy the money at todays rate don't they? Therefore, whether they think rates will rise of not is neither here nor there. They have calculated a profit margin on the rate they have offered.
I think I am right in saying that if the OP goes in for this offer, if rates are at 15% in 2 years time, as an example, the bank will not be loosing any money on his loan.0 -
Graham_Devon wrote: »I think I am right in saying that if the OP goes in for this offer, if rates are at 15% in 2 years time, as an example, the bank will not be loosing any money on his loan.
Banks typically have to roll over the money they borrow every couple of years.
If they expect rates to be at 15% in 2 years, there is no way in hell they'd fix at 5% for 5 years now.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Banks typically have to roll over the money they borrow every couple of years.
If they expect rates to be at 15% in 2 years, there is no way in hell they'd fix at 5% for 5 years now.
I don't think anyone is expecting 15% rates in 2 years time. I was only, as I said using it as an example.
I can only take it my thinking was right, as you ignored that bit and concentrated on what I said was a simple example.0 -
I had a letter from my bank a couple of weeks ago offering me a loan because they are worried I may be suffering from a lack of luxury items I can't afford.
First I have had for ages.Retail is the only therapy that works0 -
May be a Building Society (or even a bank) balancing mortgages against 5 year savings rather than the wholesale market. Who's the lender and what's your loan to value G&T..?0
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I'm more impressed they phoned you on a Sunday, which lender is it?0
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ginandtonic1988 wrote: »They have offered 5.34% for 5 years.
What are you paying currently?No reliance should be placed on the above! Absolutely none, do you hear?0
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