Loyalty Pah!

UglyBetty

Northern Rock SVR including 'Loyalty discount' = 7.44%!

I have seven years to run on my mortgage and am confused by the current mortgage market. How do I work out whether I should move my mortgage, and who to or should I just try to overpay this one?

I've just re-negotiated home & contents insurance saving £50 per month for virtually the same cover, so I'm now aiming to get a better mortgage deal.

Seems loyalty doesn't count for much these days so I'll just have to join the Tarts Club-financially speaking of course:o

herbiesjp

You could beat that rate with a fees free lifetime tracker, and not have to worry about changing mortgage again

dunstonh

Seems loyalty doesn't count for much these days so I'll just have to join the Tarts Club-financially speaking of course:o

Of course it doesnt but who is at fault? The consumer who increasingly shops around or the provider who caters for those movers? Its a bit of a chicken or egg.

Dick_here

dunstonh wrote: »

Of course it doesnt but who is at fault? The consumer who increasingly shops around or the provider who caters for those movers? Its a bit of a chicken or egg.

It has to be the provider. If they didn't offer the opportunity, the consumer couldn't take advantage of it.

dunstonh

!!!!!!_here wrote: »

It has to be the provider. If they didn't offer the opportunity, the consumer couldn't take advantage of it.

Ok, you are now the boss of a provider and make the decision that you will go for loyalty and focus on existing customers rather than new business.

How are you going to explain to your shareholders that your market share has reduced and you have still lost business because you cannot compete with the absolute cheapest? Remember, everyone is still pricing to buy market share. That assumes you survive the vote of no confidence from the shareholders

It needs all to do it. If just one or two break ranks and start buying new business then the rest have to do it as well or find themselves out of the market totally within a certain number of years.

UglyBetty

Thanks all. Still not sure what to do as fee free trackers I've looked at so far require a minimum mortgage application of 50,000 and I only need 36,000. Oh well, I'll keep on looking...

jamesd

UglyBetty, lots of providers at 20-30,000 and some down to 10,000 so perhaps you might want to have a word with a mortgage broker. If you can easily overpay and want to, do let the broker know. You won't get a new mortgage with a term of less than five years but those that let you overpay let you go below that once you've taken it out.

herbiesjp

There are deals out there - they may not be the cheapest rates, but they will definitely beat the SVR you are on

michaels

Could you not find a deal that allows overpayments then take out 50k nminimum and immediately overpay the extra above what you actually need?

UglyBetty

Thanks for your replies, am looking at a few deals with better rates over a shorter term.

dwsjarcmcd

michaels wrote: »

Could you not find a deal that allows overpayments then take out 50k nminimum and immediately overpay the extra above what you actually need?

An option building on the above theme may be to look at an Offset tracker, borrowing £50k and sticking the additional £14k in the savings pot. This would pay for the increased borrowing and maybe even be used as 'rainy day' money if you need it.