Re-mortgage with current lender, can I haggle?

mose_2

Hi, My mortgage rate is ending in december with santander, currently on 3.19%, I'm looking for a 5 year fix and they have offered me 3.99%. If I ring them back is there any room for negotiation or will it be set in stone? would I be wasting my time asking for a better rate?

Also what are the best current 5 year fixes? 75% LTV, looked at yorkshire bs at 3.04% and 995 fee but read somewhere of high valuation and legal fees.

Thanks

Dave_Ham

Would love to hear a recording of that conversation...

No, you cannot haggle over a mortgage rate.

Good luck though

mose_2

Ok, would you say 3.99% is a good rate for 5 year fix, £125 fee, obviously no legal fees or valuation as staying with same lender?

mose_2

also, my wife has just started maternity leave for a year, she is the main earner by quite a bit, this is going to go down alot for the year until she returns to work, would this cause a problem applying to a different lender?

Dave_Ham

Personal opinion is it is a fair rate, you may have more important things to worry about though...

There will be better deals out there, although it will not be by a lot. Many of these will treat maternity as normal income, although they will want to see childcare provision in the affordability numbers.

All the best

mose_2

Thank you dave

Pont

Hoping my calculations are correct!
Obviously don't know your personal requirements but, for example:-

£100,000 mortgage for 20 years @ 3.99% over 5 year fix =
£606 per month X 60 months = £36,360 + £125 = £36,485

£100,000 mortgage for 20 years @ 3.04% over 5 year fix =
£557 per month x 60 months = £33,420 + £995 = £34,415

Therefore over the 5 years (in these set of circumstances) you would be better off by £2,070 if you took the lower interest rate/higher fee option.

I use this calculator
https://mortgages.hsbc.co.uk/overpayment-calculator

Have just cut 4 years and £20 a month of my payments - yippee!

Thrugelmir

Pont wrote: »

Therefore over the 5 years (in these set of circumstances) you would be better off by £2,070 if you took the lower interest rate/higher fee option.

There are costs involved in remortgaging to a new lender which diminish the benefit.

Also SVR's differ. Santander 4.74%, YBS 4.99%. So short term benefit could be eroded in the longer term

Pont

Thrugelmir wrote: »

There are costs involved in remortgaging to a new lender which diminish the benefit.

Also SVR's differ. Santander 4.74%, YBS 4.99%. So short term benefit could be eroded in the longer term

Yep - just gave a possible scenario above - it all depends on individual circumstances as stated. My suggestion is to put all details into a calculator to figure out what works best - there are too many variables to give concrete advice here.