can you 'haggle' with mortgage lenders?

james3333

AndrewSmith wrote:

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.

yeh, i see what you mean, but i think all halifax' deals are a lot higher ( if all deals are on thier website?)
e.g i could stick with halifax at a 5.69% 2 years fixed on £86,000
or go for
A&L 5.59% 2 years fixed fee saver with no fees at all ( i think) on the £86,000

surely these 'exit fees' would be less in the long run than paying the extra .10%?

dunstonh

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.

I think you probably misunderstood what was said. The deal tie in fees cease but the standard redemption costs would be there as they are with all mortgages and providers. These charges have been round decades. Although the amounts are of course diffferent nowadays.

The mortgage offer should make reference to them and if you used a solicitor, they normally point them out to you before you sign (although some dont use a solictor for that bit anymore).

AndrewSmith

But you also have to take into account that Alliance & Leicester have some of the highest 'exit fees' in the market place. This has to be taken into account when making the initial comparison.

Also they Halifax may not have all their deals posted on their website. Consider a shoe shop. They don't have the very cheapest shoes out front as they want you to spend more money if you see what I mean. It is always worth spending 20 minutes with your existing lender to see. It also sets the benchmark for what you should be looking for.

Be quick though as Halifax have this week given notification that their rates are going to increase at the end of the week, but have not yet disclosed the new rates.

Call or see them ASAP then get comparing.

Andy

james3333

AndrewSmith wrote:

But you also have to take into account that Alliance & Leicester have some of the highest 'exit fees' in the market place. This has to be taken into account when making the initial comparison.

Also they Halifax may not have all their deals posted on their website. Consider a shoe shop. They don't have the very cheapest shoes out front as they want you to spend more money if you see what I mean. It is always worth spending 20 minutes with your existing lender to see. It also sets the benchmark for what you should be looking for.

Be quick though as Halifax have this week given notification that their rates are going to increase at the end of the week, but have not yet disclosed the new rates.

Call or see them ASAP then get comparing.


Andy

thanks for that, i get it now, jeez, there is so much to look out for!

well, my deal doesnt end for a good few months yet june i think
so, i will have to book to see the halifax in next few weeks ( no chance of doing anything by the end of the week!)

thanks.

littlejaffa

james3333 wrote:

thanks for that, i get it now, jeez, there is so much to look out for!

thanks.

we left halifax at the end of a promotional period, and the thing i remember most was their charge for getting our deeds out of their storage.
It was hundreds! I asked them to justify the fee or provide a breakdown, they were really honest and said they couldn't it was just a flat fee and there was nothing i could do about it.
I offered to pop to the filling cabinet myself to save the fee's but they didn't seem to take me seriously!

james3333

MMMmmm looks like moving for me could be VERY costly.
still, i will go and see them and blag them as much as poss.:money:

regularsaver1

They can't budge, and won't

The £175 exit fee and £50 deeds dispatch fee appears on your mortgage statements - and on offer

Miss_Penny_Pincher_2

It seems to be a recurring theme that exit fees aren't clearly explained or / understood. The first I heard of exit fees was on this site after our mortgage was arranged.

I'm sure you mortgage brokers are all open and transparent but please don't assume that all mortgage brokers are. I'm certain our solicitor pointed out to us the early redemption fees but not the exit fee but will check our key facts illustration.

Does anybody know if there is a list anywhere of mortgage providers' exit fees as these don't appear to be on their website with their other fees. I feel I would be able to more truly compare mortgages if had these details too.

herbiesjp

Miss_Penny_Pincher wrote:

It seems to be a recurring theme that exit fees aren't clearly explained or / understood. The first I heard of exit fees was on this site after our mortgage was arranged.

I'm sure you mortgage brokers are all open and transparent but please don't assume that all mortgage brokers are. I'm certain our solicitor pointed out to us the early redemption fees but not the exit fee but will check our key facts illustration.

Does anybody know if there is a list anywhere of mortgage providers' exit fees as these don't appear to be on their website with their other fees. I feel I would be able to more truly compare mortgages if had these details too.

They are all available now since mortgage regulation on the Key Features Illustration that you should get either from the broker or direct from the lender and subsequently on the mortgage offer

HTH

dunstonh

Before mortgage regulation in 2004, mortgage redemption fees were disclosed in the fees booklet many lenders issued. I remember my quotes system used to mention them back then so they were documented. Although to a lower key than they would be now. There was no requirement to mention mortgage redemption fees verbally. I stopped doing mortgages in 2003 so dont know what current KFIs say about them or what current rules are. There are enough here who do though.