can you 'haggle' with mortgage lenders?

james3333

Hi guys, iam currently with the halifax and am coming to the end of my deal.
iam looking into A&L and Portman mortgages for the best deal.
A&L offering 4.84% 2 years fixed
portman 4.83% 2 years fixed
both have £999 fee and i assume all solicitors and legal fees must be paid by me?.
now, i would like to avoid ALL fees if possible and stay with the halifax, but my question is......

if i go to sit down with the halifax mortgage guys, armed with my facts and figure of these deals, will i be able to 'barter' with them and get a better deal
(example) get halifax to 5% for 2 years fixed? ( instead of their usual 5.69%)
this way i wouldnt pay any fees and get a decent deal and they would keep my custom

cheers

AndrewSmith

In a word no.

They would simply say 'if you dont like what we are offering then pay our exit fees and move to a different lender'.

No loyalty or ability to barter I'm afraid.

james3333

i wont have any exit fees becuase my deal will have come to an end.
still no bartering?
so, there is no point going to see the mortgage bloke from halifax to see what he can offer me?
surely they should 'persuade' me to stay with them?

herbiesjp

You should always see what your current lender has to offer, and then compare, but they will not reduce the rates/fees to keep your business.

You will indeed have exit fees to pay with Halifax - maybe no more early repayment charges, but defintely exit fees

james3333

herbiesjp wrote:

maybe no more early repayment charges, but defintely exit fees

REALLY??????
how much are we talking?
i thought once the deal ( capped for 3 years) came to an end i could go wherever i want?

herbiesjp

You can go wherever you want you have to pay these closing/exit fees, but you'll have to check with Halifax, might be in the region of £175 admin fee and £50 deed despatch fee

HTH

AndrewSmith

james3333 wrote:

i wont have any exit fees becuase my deal will have come to an end.

You will have no early redemption penalty but you will have to pay deeds release and closure fees.

so, there is no point going to see the mortgage bloke from halifax to see what he can offer me?

Yes, go and see what they will offer, it is always the first port of call you should make.

surely they should 'persuade' me to stay with them?

Why? They have had your business for an incentive period selling the money to you for that time at a profit.

It's a bit like going into a Ford showroom and asking them to sell you a Mondeo for the same price as the Vectra in the neighbouring Vauxhall showroom.

They will not barter at all. They know that if you walk away there will be countless other new mortgage customers to replace your business.

james3333

herbiesjp wrote:

You can go wherever you want you have to pay these closing/exit fees, but you'll have to check with Halifax, might be in the region of £175 admin fee and £50 deed despatch fee

HTH

jesus, they never told me this!
i remember sitting with the guy at the time and asked him about exiting and he said after 3 years ( deal time) we wouldnt have to pay any exit fees.
at least !!!!!! turpin had the decency to wear a mask when he robbed people, he just lied to my face then!
git.

AndrewSmith

james3333 wrote:

jesus, they never told me this!
i remember sitting with the guy at the time and asked him about exiting and he said after 3 years ( deal time) we wouldnt have to pay any exit fees.
at least !!!!!! turpin had the decency to wear a mask when he robbed people, he just lied to my face then!
git.

Check your original mortgage offer and quote, it will be listed on there somewhere. If not then you may be able to contest the fees and have them waived.

james3333

AndrewSmith wrote:

Yes, go and see what they will offer, it is always the first port of call you should make.

why if they wont budge on anything?

AndrewSmith

james3333 wrote:

why if they wont budge on anything?

Because if they have a product that is, say, 0.15% higher than the one of another lender you may simply be able to switch to that product instantly without having to pay exit fees and subsequent arrangement/valuation/legal fees with a new lender. The product with the slightly higher rate with your existing lender could in fact work out cheaper overall when you take into account all the fees payable to move to a new lender.

Cheaper rate does not always mean most cost effective product. Don't be enticed in by the promise of a lower interest rate with a new lender until you have thoroughly compared all options on a true cost basis.