bank want us to pay lesson the mort, why?

ALIBOBSY

OK had a call from our branch saying they noted we were on a relatively high mortgage rate (we have been on the SVR for a while) and that we have high equity and only 8 yrs left to pay (all true).

Being a bit cynical I assumed it was the usual sales call and asked a few questions expecting to just tell the guy to take a hike.
Basically he said because of our situation we could move to a lower rate offer with them.
So I said we would never get a new mortgage on our credit rating-last of the defaults etc end in the next 15 months, but until then its improving but not great. No he says this isn't a new mortgage or would require a credit search. It would be moving our mortgage onto a better deal with them and would be done on internal scoring-he implied that he had checked this and we would be approved.

I explained OH was not working currently (agents reckon won't be many/any contracts until after crimbo-hes in IT) and hadn't had a permanent job since being made redundant last year-worked through agents on short term contracts in between. BUT again he insisted not an issue this is purely about amending your current deal and based on your history with us.

I asked whats in it for them and he talked about an example where we would go onto a 2 yr fix then back onto SVR (I said so then tied in for a period and he said the exact deal might not be that one).
I asked about fees-he said no fees at the mo.

So in the end I agreed he could ask the mortgage dept to call us back to discuss.

Now obviously I am very cynical about these things and will ask all the same questions and more as well as going through any paperwork, BUT has anyone here had a simular deal/offer. Why would a bank do this are they trying to consolidate the loan book and tie in good payers to longer term deals albeit at a lower rate?
Is it a government push (its one of the banks "bailed" out so to speak) to reduce peoples outgoings?

Any thoughts and comments/tips on what to ask welcomed.

Ali x

Meeper

You post a decent amount of information, but instead of saying which lender it is, you simply say that it is one of the bailed-out banks. Please can you give the name, which may shed some light on the matter.

Also, what rate have they offered to you?

ALIBOBSY

They haven't offered a definate deal yet but the initial call suggested rates around 2%. Didn't want to mention the bank directly as I am a bit paranoied about posting personal details and didn't think it made that much odds, but lets just say MSE has a story about them listed in the current news items lol.

Ali x

We have always assumed until we have 2 years worth of contract earnings and the defaults drop off that we have no chance. Just for info the mortgage in around £35k on a house worth around £130k (we have another secured loan with about 25k on-stupid mewing -is that the right word lol). We are in the black with the same bank-so they can see all our transaction history etc. I suppose I am wondering if this is possible or was he just trying to get a referal fee and talk a load of BS.

_Andy_

Really don't get why you don't just say who the lender is

Wh05apk

It is probably a sales based called, possibly the person calling has targets for getting borrowers on SVR tied in to a new deal, they will also be pushing to cross sell other products, such as life cover/ASU/B&C etc.

Are you working/earning, if so you may be able to get a better deal elsewhere and consolidate the secured loan?

ALIBOBSY

_Andy_ wrote: »

Really don't get why you don't just say who the lender is

I did-see above.

In the end the mortgage dept called and I chatted to them. The initial guy from the branch was right in that we didn't need to be working, but to qualify for the free fees we had to have 1k a month passing through our current account with them, we could still have an offer as its an internal score thing, but would have to pay an "arrangement fee" of £499 kind of defeating the object.

Was advised we can ring the mortgage dept at any time and they can check what offers are available to move our mort to and as long as we aren't increasing the amount no credit check would be required-just an admin change and yes it appears to be about tieing in the mort for as long as possible.

TBH we assumed there was no options regarding mort etc until the last of the defaults drop off so once income goes back up in the new year will seriously look into getting a lower rate with them.

Ali x

Meeper

Well, if you can't be bothered to give the name of the bank, I won't bother trying to help. Detail is important when asking for assistance, and making it harder for people to help you is a little pointless.