Breaking and Refixing Mortgage: Two questions

F

Flashpants

New Member
Messages
3
Hi all! A query for you.

My five-year fixed rate is up in the Summer of next year. Although it's assumed that there will be cuts to the ECB rate between now and then, nothing is inevitable, and I don't hope to match 2020's rate then anyway. In short, whatever happens, my payments go up.

I will be moving my mortgage as soon as the rate ends and will have started the transition process. But being an odd mix of alert and lazy, I thought I could stay where I am and save on hassle. I'll stay, even if it means another ten or twenty quid a month, rather than go through a six-to-eight-week process.

Would my current bank accept these terms?
  • Give me a new five-year fixed-rate deal
  • Give me the cashback usually given to switchers from other banks (available on fixed-rate deals with some banks, including mine)
  • Give me a small mortgage top-up
I would have thought that keeping a customer rather than seeing them walk away and get the same deal elsewhere would make more sense. I will walk, but I won't if I don't have to.

Also, as a corollary question: if I am breaking and re-fixing a mortgage with the same lender, do I need a solicitor?

I sincerely appreciate any responses as I think this through.

Thank you!

EDIT: Clarified sentence above — I am being prevented from responding to posts below, presumably an anti-spam feature. I'll respond properly as soon as I am allowed.
 
Last edited:
Flashpants said:
Hi all! A query for you.

My five-year fixed rate is up in the Summer of next year. Although it's assumed that there will be cuts to the ECB rate between now and then, nothing is inevitable, and I don't hope to match 2020's rate then anyway. In short, whatever happens, my payments go up.

I will be moving as soon as the rate ends and will have started the transition process. But being an odd mix of alert and lazy, I thought I could stay where I am and save on hassle. I'll stay, even if it means another ten or twenty quid a month, rather than go through a six-to-eight-week process.

Would my current bank accept these terms?
  • Give me a new five-year fixed-rate deal
  • Give me the cashback usually given to switchers from other banks (available on fixed-rate deals with some banks, including mine)
  • Give me a small mortgage top-up
I would have thought that keeping a customer rather than seeing them walk away and get the same deal elsewhere would make more sense. I will walk, but I won't if I don't have to.

Also, as a corollary question: if I am breaking and re-fixing a mortgage with the same lender, do I need a solicitor?

I sincerely appreciate any responses as I think this through.

Thank you!
Click to expand...
in short no, if you want cashback you will need to switch.
 
Flashpants said:
Thank you. The T&Cs probably make this clear, and I know what the "official" answer would be, but I will probably chance my arm anyway. I'm grateful for the feedback.
Click to expand...
no worries, mortgage top up will be more hassle than you think as well, good luck tho!
 
I once got my lender to give me a 10 basis point discount to their advertised rates by threatening to switch.

Saving was about €200 a year.

I tried this technique about five times but was only successful once.
 
You have a year to go on your current, presumably cheap, fixed rate. So you won't gain by breaking and fixing again or switching.

So you don't need to do anything about this until a month or so before the fixed rate is up.

The market is changing all the time and there might be a new lender with better rates. Or your existing lender might be the most competitive.

The cleanest switch would be for the same amount of money. I think it can be awkward getting a switch and and a top-up at the same time.
Flashpants said:
Give me a small mortgage top-up
Click to expand...

How small? You might be better off saving this money in the meantime or else taking out a personal loan? The rate will be higher but the legal costs will be lower. So it depends on the amount of the loan.

Having said that, if you do have a personal loan, a new lender might reduce the amount they will give you as you already have repayment commitments.

So what is your priority? The lowest rate or a top-up? If you need a top-up you might be better off getting it now from your existing bank.
 
Blackrock1 said:
no worries, mortgage top up will be more hassle than you think as well, good luck tho!
Click to expand...
Everything turns out to be more hassle than I thought, including replying here! There seems to be a time-rated allowance for new accounts to post; I haven't been allowed to respond until now.

Dr Strangelove said:
I once got my lender to give me a 10 basis point discount to their advertised rates by threatening to switch.

Saving was about €200 a year.

I tried this technique about five times but was only successful once.
Click to expand...
I'm no expert by any means (as I'm sure is evident to all), but I had been hoping that a bit of polite, plain-speaking, nerve, and plámásing at the branch over the course of a half-hour might bring results.

Brendan Burgess said:
You have a year to go on your current, presumably cheap, fixed rate. So you won't gain by breaking and fixing again or switching.

So you don't need to do anything about this until a month or so before the fixed rate is up.

The market is changing all the time and there might be a new lender with better rates. Or your existing lender might be the most competitive.

The cleanest switch would be for the same amount of money. I think it can be awkward getting a switch and and a top-up at the same time.


How small? You might be better off saving this money in the meantime or else taking out a personal loan? The rate will be higher but the legal costs will be lower. So it depends on the amount of the loan.

Having said that, if you do have a personal loan, a new lender might reduce the amount they will give you as you already have repayment commitments.

So what is your priority? The lowest rate or a top-up? If you need a top-up you might be better off getting it now from your existing bank.
Click to expand...
All very good questions; so good, in fact, that I already think that I would wilt under the intensity of the cross-examination! I'm not going anywhere until the fixed-rate term is up, and that is sometime around midsummer next year.

You folks have given me plenty to think about, and now I'm considering using the services of a mortgage broker. I have some specific requests, and I believe they would do a much better job of presenting my case to a lender than I would.

Thanks all!
 
You must log in or register to reply here.
Back
Top