Haggling a remortgage?

Iamdave

Hi


Just wondering is there is any wiggle room/haggling in regards to re-mortgaging?


Basically I can find similar deals to what my current lender is offering but perhaps paying a few quid less a month or slightly higher cash backs.


Is there any negotiation to be done by perhaps saying I'll stick with current lender if they reduce arrangement fee or increase cash back?


Thanks

glosoli

Not possible, the rates and fees are what they are.

zacepi

Iamdave wrote: »

Hi
Is there any negotiation to be done by perhaps saying I'll stick with current lender if they reduce arrangement fee or increase cash back?

Annoyingly, seems like they don't.

I tried with my current lender - just to get them to match a better offer I had found but would involve the hassle of a financial interview, valuation etc. They won't move on anything.

Not sure if this is just prehistoric computer systems that won't accept anything other than the vanilla rates and fees that are programmed, or the banks/building societies being bloody minded.

I like to negotiate on every major financial transaction I make especially one where I can demonstrate being a great customer (ie. never missed a payment, never been late, good credit risk etc). Mortgages it seems are set in stone.

glosoli

Swapping mortgage deals is not like haggling in a Turkish market stall - it is nothing to do with banks being stern or ancient computer systems but the way mortgages are funded on the open market - banks essentially make wafer thin profits on mortgages, and to start reducing rates for particular people mean they wouldn't make a profit.

Furthermore it would not be treating customers fairly if they offered particular customers better deals than everyone else because they were a better negotiator.

Keezing

glosoli wrote: »

Swapping mortgage deals is not like haggling in a Turkish market stall - it is nothing to do with banks being stern or ancient computer systems but the way mortgages are funded on the open market - banks essentially make wafer thin profits on mortgages, and to start reducing rates for particular people mean they wouldn't make a profit.

Furthermore it would not be treating customers fairly if they offered particular customers better deals than everyone else because they were a better negotiator.

Lenders often make hundreds of thousands of pounds of profit over the life of a typical mortgage.

Banks can and do offer discounts to customers for a variety of different reasons. I was able to 'negotiate' the 2-year fix rate on a 3-year product, but this was after an upheld complaint.

Many businesses offer different pricing to customers for the exact same product. It's got nothing to do with fairness.

However, it is highly unlikely that a lender will be interested in giving a better rate just because someone asks. Banks have no loyalty to customers.

csgohan4

mortgages are set in stone usually as you say as they regulated by the FCA and as such they have to abide by set rules and not throw them away at whim.


While haggling holds true to most things in life such as mobile contract, sky/BT e.t.c, they are not financially regulated products

Lemonsqueezer78

Keezing wrote: »

Lenders often make hundreds of thousands of pounds of profit over the life of a typical mortgage..

Any facts or actual sources to back that statement up?

Very few customers spend the entire 20//25/30 years of the mortgage with a single lender. The "life" of a typical mortgage with one lender these days is often not much longer than the 2-3 year introductory rate periods they are offering, before many customers will ditch and go to another lender.

The fact that customer relationships with a lender are probably much shorter, and deducting the costs associated with marketing and on-boarding new business, plus the lenders own costs associated with borrowing the money which they lend to us - I'm pretty confident they are NOT making hundreds of thousands of £s profit on a typical mortgage. Its a bit more complicated than that...

Thrugelmir

Keezing wrote: »

Lenders often make hundreds of thousands of pounds of profit over the life of a typical mortgage.

How big is a typical mortgage?

Thrugelmir

zacepi wrote: »

I like to negotiate on every major financial transaction I make especially one where I can demonstrate being a great customer (ie. never missed a payment, never been late, good credit risk etc).

How you can possibly demonstrate that you will be a "great" customer for the next 25 years?

Hindsight proves nothing.

tykesi

zacepi wrote: »

I can demonstrate being a great customer (ie. never missed a payment, never been late, good credit risk etc). Mortgages it seems are set in stone.

You mean a normal customer who fulfills their contractual obligations?

csgohan4

your expected to pay on time