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RedfordML
Posts: 900 Forumite
Is this a 'done' thing?
Our current rate is 4.19% but when we finish this mortgage we drop to StandVariable 4.00%.
Our current providers best rate to switch to is 4.49% - would we be able to negotiate to stay on the 4.19, or is it a case of the figure you see is the figure you pay?!
As by re fixing they keep the custom, we would be paying above standvar so + for the bank!!
Our current rate is 4.19% but when we finish this mortgage we drop to StandVariable 4.00%.
Our current providers best rate to switch to is 4.49% - would we be able to negotiate to stay on the 4.19, or is it a case of the figure you see is the figure you pay?!
As by re fixing they keep the custom, we would be paying above standvar so + for the bank!!
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Comments
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Depends on how strong your situation is ..... are you the type of borrower the lender wants to keep?
EVERYTHING is negotiable .. I haggle for most things in life, everyone should.Bringing Happiness where there is Gloom!0 -
They can only say no, but I suspect that is indeed what they will say. If you are on a fixed term product, particularly a fixed rate one, as I understand it the lenders have a set amount of funds at a set cost for the duration of that term - so the funds are no longer available after the end of the fixed rate.0
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You can but ask. You'll need to have evidence that you can actually get a better rate elsewhere. I did this 7 or 8 years ago, and the mortgage company did indeed cut its rate.
Won't always work though, but nothing ventured...0 -
I don't understand. If the Standard rate is 4%, why do you want to pay 4.19%? :doh:Our current rate is 4.19% but when we finish this mortgage we drop to StandVariable 4.00%.
Our current providers best rate to switch to is 4.49% - would we be able to negotiate to stay on the 4.19, or is it a case of the figure you see is the figure you pay?!0 -
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Mortgage rates are not 'negotiable'0
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Mortgage rates are not 'negotiable'
They are in a way. When you tell them your moving your mortgage to another provider because of lower interest rates they sometimes will come to a deal rather than losing you completely. Ie, they would prefer to have less cash from you than no cash. Of course, you need to check your mortgage agreement before doing so - you may have agreed to fees that would outweigh the change in rates.0 -
Lenders have set products which have to be costed and the funds raised by their treasury teams. There simply isn't the flexibility to trim a point here and there to win business.
You'll be given the options which fit your profile and loan to value and be able to pick one of them.
If you don't like what you're offered, the option is move and remortgage elsewhere.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »
If you don't like what you're offered, the option is move and remortgage elsewhere.
Exactly!Is there a reason you need to stay loyal to your existing provider?I know sometimes poviders can offer you an incentive.If enough existing customers make the effort to leave their existing more expensive mrotgage provider,they'll get the hint that their rates need to be lowered to attract enough custom.0 -
Assuming the best fixed rate is 4.49%, how many months would you need to be on the SVR at 4% before fixing at 4.49% for X years to save more than fixing at 4.19% for X years now. Without the benefit of a crystal ball, how likely do you think it is that the SVR will move in that timescale? Without actually knowing the time or money involved and not having a crystal ball myself, I would still hazard a guess that sticking to the SVR for the time being and switching to the best fixed rate product as soon as interest rates start twitching will save a lot more than negotiating to stay on your current fixed rate now. Even if the fixed rates available increase because of the same twitchiness that makes you decide it is time to fix, so you end up fixing at something a bit higher - 4.79% maybe - I would still take the gamble if I were in your shoes. You just have to remember to keep an eye on the mortgage market so you know what movements are happening and what is available when you decide to take the plunge.0
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