Now's the time to negotiate a better mortgage deal
Posted: Mon Apr 27, 2020 9:39 pm
I've posted this elsewhere on the forum but, on relection, I think it deserves a post of its own. A few weeks ago I wrote to my lender pointing out that (1) the mortgage holiday was all very well but didn't really benefit me because right now I've got a bob or two in the bank so can pay the mortgage, however... (2) due to Coronavirus, I could be in effect losing as a year on what for me (because of my age) was a short mortgage term (7years), so 14% of the timescale I was expecting when I signed up to the mortgage, (3) due to Coronavirus, I wouldn't be able to take advantage of the best part of year two of my 2 year fixed rate mortgage deal, and (4) the 0.65% cuts in bank rate in March was benefitting the lender but not me, the hard pressed borrower on a holiday let mortgage with (currently) zero customers! So I'd be grateful a further year on the term and to negotiate a new fixed rate deal... please (always say please).
I wrote two follow up letters and also put my name down to attend the lender's AGM scheduled for later this week where I intended to argue my case in person if I had to. Eventually the lender responded and I got the extra year on the term and they offered me a range of options on the new deal and I plumped for a deal that was 0.43% less than my current deal and fixed for a further 5 years, so I was well pleased. I must admit I was surprised at how easy it was. I would recommend that anyone on a mortgage does something similar.... after all as a saver I've had a letter from a lender explaining that due to the cut in base rate they're cutting my interest rate from 1.2% to 0.55%, so surely lenders should expect a dose of the same medicine shouldn't they?
I wrote two follow up letters and also put my name down to attend the lender's AGM scheduled for later this week where I intended to argue my case in person if I had to. Eventually the lender responded and I got the extra year on the term and they offered me a range of options on the new deal and I plumped for a deal that was 0.43% less than my current deal and fixed for a further 5 years, so I was well pleased. I must admit I was surprised at how easy it was. I would recommend that anyone on a mortgage does something similar.... after all as a saver I've had a letter from a lender explaining that due to the cut in base rate they're cutting my interest rate from 1.2% to 0.55%, so surely lenders should expect a dose of the same medicine shouldn't they?