Bargaining on interest rates

A

apd

Registered User
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Hi.

In one of my previous threads (a different issue) i mentioned that i have gotten a tracker mortgage from AIB at 3.1%. The house I am buying is 328,000, the mortgage amount is 266,000. This is 80% give or take. the 3.1% rate is give to those borrowing less than 80% of the property price.

Someone mentioned that i could be able to get a rate of 2.95%. I believe the actual rate is 2.99% now for those borrowing 60% of the property price. There is a 20% gap there. Would the bank branch even entertain a request by me for that rate?

I did not go to a mortgage broker. would they have been able to get that rate for me?

Regards.
 
No harm in asking for yourself. At worst they will simply say no. It's a borrower's market and lenders can be flexible and negotiate on rates and/or other charges with individuals. If that fails consider trying a broker. However when a lender has specific rates for specific loan to value ratios then they may be unlikely to deviate from those.
 
<" I believe the actual rate is 2.99% now for those borrowing 60% of the property price.">

Thats not a big deal, my mortage is at 2.95% even though my LoanToValue is more than 60%. Its actually 89%. I thought NIB would have given something less than 3% too.
 
Apd, we were similar to steelblue in that we got an offer that we should not have received were one to believe the written literature and terms and conditions.

We went to several banks, (and had to send in about 6 inches of papers and documents etc. - e.g. salary certs, P60s etc etc, it was a real pain), but when that was done, we could play off between several lenders, a mix of banks and brokers.

A good line if you're talking to them is " we would like to go with your bank, but we got a substantially better offier elsewhere "(but don't tell who). As Clubman says, there's no harm in asking. We found the best offer from a local bank branch who obviously wanted the business. If someone in the bank knows you as a customer, it may help your cause also.

Bootdog
 
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are strict though are NIB on the whole salary multiple....according to their website they still obly give the 3.5 + 1 salry multiple I think
 
Hi

I found AIB were willing to negotiate when I spoke with them about the potential of doing my mortgage ... ended up with Ulster Bank afterwards, who also negotiated ;)

Don't ever be afraid to ask, if they say No, dont give up too quickly, haggle a bit or ask what will they do to keep your business ... get something, or consider moving.

If your moving, speak to some of the well regarded brokers about who to move to etc. Many of the established brokers can offer:

A) packages, which will assist with transfer costs, such as legal fees, valuations etc
B) good advice, which is always worth listening to
C) the hidden extra of being well in with the banks and able to influence the bank, a little more than an individual, given the level of business they transact etc ;)

Good luck & don't taken No for an answer, ensure you get something for your visit / phonecall to the bank ;)

Cheers

G>
http://www.rpoints.com/newbie
 
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