Specific Mortgage Renegotiating Advice for Offset with large lump sum

BaseRat

Afternoon All,

I have a meeting on Friday with Woolwich to discuss our mortgage needs when our fixed deal ends in September.

I am in the fortunate position of being able to pay the mortgage off within 12 months, with a large lump sum of £75k to go in when I move from Repayment to Offset. Current balance is £115k, and the rest in a few months time after that, probably March/April 09.

Because of the credit crunch, I know lenders are keen to retain good customers, and also to get their hands on money they can loan out, so I am wondering how to "explain my cash rich position" to the lender to get a good deal for me.

Note: Woolwich appear to be one of the best offsetters, so I think I'll end up using them, but I am happy to "threaten to move" to get a better deal.

Should I mention the lump sum up front and see what they come up with, or not say, then mention I was looking for a better deal expecially as I can pay in £75k in September, and tempt them into a better deal?

Any negotiating advice greatly received.

BaseRat (Looking forward to being Mortgage Free by 2009! :beer: )

maninthestreet

Are Woolwich aware of this 75K lump sum you have? Is it currently in an account with the Woolwich?

BaseRat

It's stored 2 places - in ICICI and Alliance and Leicester Company Account (until I declare a dividend in September. Not done any divvies yet this tax year)

Cheers

BaseRat

Replying to my own posts

I could pay the £75k now now, if they'll take my money

Also, I could pay the full amount in September if I officially loan myself the remaining £30k and pay interest to myCo at 6.25%, leaving £10k so I keep the mortgage payer/credit history benefits.... then declare a Divi in April 09 for the £30k to cancel the loan?

Conrad

Obviously no lender can tailor make specific rates for an individual, as the administrative costs would outweigh the benefits and an unwelcome prescident would be established.

I meet clients who have millions in the Bank who have never made such a request.

BaseRat

Yes, agreed on not personalising the deals....

I was thinking of something different... I was hoping to get any arrangement fees "paid for" (£347 or £600 depending on which website you check ), since they are my current provider.

The clerk who made the appointment amended the CRM for the session to say "Do what you can to retain this customer"... which made me think there might be some sort of sweetener on the table?:rolleyes:

As long as the wretched millstone is paid off within 12 months I'll be well happy - anything else is a bonus :T :T :T

Thanks for the info - every little helps

BaseRat

Well, we had the meeting, and despite being able to give Woolwich £100k over 6 months, they didn't want to waive the juicy arrangement fees. (About £700).

Just a wild stab in the dark, but I reckon they would make a little bit more than £700 in lending my £100k offset money out given the current market. :mad:

Egg seems the next best bet rate-wise- I wonder if they would like my money burning a hole in their pocket enough to waive the fees?

_Andy_

If it's the Egg tracker you were after than you're too late, it was withdrawn.

They now have an SVR product at 6.79% with a £499 fee.

I don't mean to be blunt here but all the while you're procrastinating and hoping a lender is going to waive a fee, products are being withdrawn and priced upwards.

Bear in mind that a £100k mortgage (especially as your intention is to get rid of it in the near future) isn't offering huge products to lenders in any case.

As already mentioned, mortgage products are specifically priced and aren't open to negotiation.

silvercar

As most of your mortgage will be offset, it is the arrangement fees that are more crucial to you. If a mortgage is totally offset it doesn't much matter if the interest rate is 5% or 10% as you won't be paying any interest.

I've always found the Coventry good for offsets, though I'm not sure what they are offering at the moment.