Remortgage During Fixed Term - Same Lender

blawford

I am 2 years into a 5 year fixed mortgage at 3.49%. I have looked at all the figures and it seems I will be much better off remortgaging as long as the new rate is below 2.28%.

Searching the deals we could get now, the best is at 1.99% and it is with the same lender as we are currently with (HSBC).

I am wondering if anyone has any experience with the kind of situation I am in ("remortgaging" with the same lender while in the fixed period) and whether there was any room for negotiation over either the early repayment fees on the current mortgage, or the booking fees on the new new one? Unfortunately HSBC seems to be the best deal around currently, it would be better as leverage if there was a better deal I could threaten to leave them for.

I will obviously ring HSBC at some point and ask them the question, but I am at work currently so can't, plus I feel it would be a good idea to be forearmed on the possibilities.

Thanks.

Thrugelmir

Threatening to leave holds no power. If they did agree. Then having contractual ERC's would be pointless.

As you say your starting point needs to be to contact them and establish their current policy.

blawford

Not sure if I see your logic here?

My mortgage, if I was to pay it off over the time I have agreed (25 years), even using the rate I am getting now (the rate will actually be higher when the fixed ends) will cost me £80,000 in interest versus the £6,800 which they will get by me leaving.

Surely that gives some negotiating power?

muhandis

AFAIK, it looks like a no-go to me without forking over the ERC, but as you say, there's certainly no harm in asking.

blawford wrote: »

I am 2 years into a 5 year fixed mortgage at 3.49%. I have looked at all the figures and it seems I will be much better off remortgaging as long as the new rate is below 2.28%.

Searching the deals we could get now, the best is at 1.99% and it is with the same lender as we are currently with (HSBC).

I am wondering if anyone has any experience with the kind of situation I am in ("remortgaging" with the same lender while in the fixed period) and whether there was any room for negotiation over either the early repayment fees on the current mortgage, or the booking fees on the new new one? Unfortunately HSBC seems to be the best deal around currently, it would be better as leverage if there was a better deal I could threaten to leave them for.

I will obviously ring HSBC at some point and ask them the question, but I am at work currently so can't, plus I feel it would be a good idea to be forearmed on the possibilities.

Thanks.

glosoli

blawford wrote: »

Not sure if I see your logic here?

My mortgage, if I was to pay it off over the time I have agreed (25 years), even using the rate I am getting now (the rate will actually be higher when the fixed ends) will cost me £80,000 in interest versus the £6,800 which they will get by me leaving.

Surely that gives some negotiating power?

it won't give you any power at all, sorry to be blunt

Thrugelmir

blawford wrote: »

Not sure if I see your logic here?

My mortgage, if I was to pay it off over the time I have agreed (25 years), even using the rate I am getting now (the rate will actually be higher when the fixed ends) will cost me £80,000 in interest versus the £6,800 which they will get by me leaving.

Surely that gives some negotiating power?

You are talking about yourself i.e. at a micro level. Lenders set their policies at a macro level, i.e, entire mortgage books consisting of hundreds of thousands of mortgages. Plenty of people apply for mortgages, funds are finite, so your custom is no great loss. As easy enough to lend the money elsewhere.

HSBC lend around £12 billion a year for the record.