Remortgage haggle Natwest

heytoki

Hello all,

My Mortgage with Natwest is due for renewal at the end of September and Natwest is offering me these 2 year fixed rate when i log into my Natwest account:

1 - 5.47% (my payments will go up from £456 to £576 a month)
2 - 5.04% with product fee £995 (payments will up to £555). When i factor the £995, it will be an extra £41.5 a month (995/24) so clearly this deal is worse than the first one.

I contacted a Financial advisor and can only get me the same deal as above and he doesnt charge me any fees so my assumption is that he will get a commission from Natwest. 

What i was thinking it is to call Natwest and ask them for the second deal and waive the £995 and if they refuse, i will tell them that i will go to the financial advisor who will get me the first deal anyway and Natwest will have to pay him. 

i dont have anything to lose for asking but someone has tried to haggle the rate before with a bank?

Thanks

Hoenir

Mortgage lenders don't haggle. 

sammyjammy

Go for it but you are just wasting your time.

Exodi

You've got nothing to lose, please let us know how it goes (I'd wager you'll be wasting your time).

I'd probably leave this bit out of it though, comes across as a bit petty and they're unlikely to be that bothered considering you're still committing to pay them thousands in interest every year.

heytoki said:

What i was thinking it is to call Natwest and ask them for the second deal and waive the £995 and if they refuse, i will tell them that i will go to the financial advisor who will get me the first deal anyway and Natwest will have to pay him. 

heytoki

Hi Exodi,
You are right, i can leave that bit out. 
Also, looking at the news, i will wait now to August and see if the deal improves. 

Hoenir

heytoki said:

Also, looking at the news, i will wait now to August and see if the deal improves. 

Mortgage rates might even increase. 

Exodi

heytoki said:

Hi Exodi,
You are right, i can leave that bit out. 
Also, looking at the news, i will wait now to August and see if the deal improves. 

You can lock in a switch and you'll have time to change your mind before the switch happens at end of September.

It's better than just praying rates go down over the next months (and prevents the risk as Hoenir says of them going up).

ACG

100% it will just be a wasted call. 
In our industry there is something called "Treating customers fairly" (TCF). One of the points within that policy is that customers need to be treated equally. 

If they waived your £999 fee, they would need to do it for everyone applying for the same product. 

Also, the commission they pay to brokers is not just a cost. Its also a bonus, they are not liable for the advice, they do not have to do the admin for the advice (switching it over, justifying the advice and documenting it etc). 

amnblog

You have not stated your loan to value but, if, as I suspect, it is above 60% but less than 75%, the person you spoke to is incorrect and a Broker can get you 5.32% without a fee or 4.94% with a fee.

You have not stated your mortgage balance but it is likely under six figures based on your monthly payments, if so, you want the higher interest product without the fee.

As to haggling with the Lender. Do not waste your time or theirs.

heytoki

Hoenir said:

heytoki said:

Also, looking at the news, i will wait now to August and see if the deal improves. 

Mortgage rates might even increase. 

out of ignorance, why the rates would go up if the BOE cut interest rates in August?

TheMilkmansDad

heytoki said:

Hoenir said:

heytoki said:

Also, looking at the news, i will wait now to August and see if the deal improves. 

Mortgage rates might even increase. 

out of ignorance, why the rates would go up if the BOE cut interest rates in August?

Because bank have already factored this in and they may have expected rates to have already come down. Hence now, they may increase the rates.