Can you negotiate with a mortgage lender?
Can you negotiate with a mortgage lender?
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camshafted

Original Poster:

938 posts

195 months

Thursday 23rd August 2018
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So, my fixed rate is coming to an end and it's remortgaging time.

I've had a look and it seems my lender, while relatively competitive, isn't offering the best monthly deal for me.

I've been told in the past that their rates are non-negotiable, but has anyone here managed to barter and get a better monthly rate?

Insurance companies, Sky TV etc... always 'see what they can do' and come back with a better offer so I'm hoping in the competitive mortgage market my lender will do the same.

Ultimately, if they lose me they'll be losing a chunk of cash over a 2-3 year period, so it's in their interest to be competitive surely?

Evolved

4,079 posts

217 months

Thursday 23rd August 2018
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Sarnie is the man for this one...

I wouldn’t have thought it’s possible as lenders rates are fixed and determined on your criteria. A broker would be able to offer the best deals available on the market though.

Sarnie

8,372 posts

239 months

Thursday 23rd August 2018
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camshafted said:
So, my fixed rate is coming to an end and it's remortgaging time.

I've had a look and it seems my lender, while relatively competitive, isn't offering the best monthly deal for me.

I've been told in the past that their rates are non-negotiable, but has anyone here managed to barter and get a better monthly rate?

Insurance companies, Sky TV etc... always 'see what they can do' and come back with a better offer so I'm hoping in the competitive mortgage market my lender will do the same.

Ultimately, if they lose me they'll be losing a chunk of cash over a 2-3 year period, so it's in their interest to be competitive surely?
Lenders don't negotiate.

You take what they offer or you leave, simple as that..........most lenders product transfer rates are poor when compared to whats available from the rest of the market.......but they know that......they know it's a quick easy press of a button for you, but that convenience comes at a cost in the form of a poor rate....

And they are not going to be bothered by threats to leave.........no problem..........for every one that goes out the backdoor, they're replaced by one coming in the front door.....

With regards to;

"it's in their interest to be competitive surely?"

The reality is that you signed up to an initial fixed rate period and then X amount of years on their SVR.......no where does it state in your T&C's that the lender is obliged to give you a rate to transfer to at all.........

Deesee

8,509 posts

113 months

Thursday 23rd August 2018
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As per sarnie above I work in commercial were there can be some flexibility, but resi. No chance that’s the product take it or leave it.

It might be that your mortgage funder needs/wants 100% of your capital back to relend out or wants more margin on new products.

Unfortunately loyalty does not mean much anymore, shop around and get what you feel is right for you.

Good luck

camshafted

Original Poster:

938 posts

195 months

Thursday 23rd August 2018
quotequote all
Thanks Sarnie and Deesee - that's good to know.

As you say, they know it's a time v convenience situation - tempting to do nothing and just stay with them despite knowing I can get a better rate elsewhere.

Edited by camshafted on Thursday 23 August 10:17

Sarnie

8,372 posts

239 months

Thursday 23rd August 2018
quotequote all
camshafted said:
tempting to do nothing and just stay with them despite knowing I can get a better rate elsewhere.

Edited by camshafted on Thursday 23 August 10:17
...thats what they are hoping for........they want as many customers as possible to take the easy/expensive option.......