Newest Review: ... good in this respect. This was very easy to set up and did not involve a great deal of paperwork. ***Mortgage Having 4 separate mortgag... more
Great value IF you are pushy
Member Name: oxfordbloke
Date: 11/06/01, updated on 04/07/01 (455 review reads)
Advantages: Will match best offer elsewhere
Disadvantages: You have to pressure them, Effectively they are overcharging other borrowers
The high street banks always appear, on the face of it, to have higher mortgage rates than the building societies, and their former brethren that have switched over.
What they actually do is charge more for anyone daft enough to pay, but charge extremely competitive rates if you are willing a harass them every now and then.
I was in a fixed rate mortgage at a fairly bad rate. At the time i got the mortgage i had no idea what i was doing, and was sold the mortgage by a financial adviser.
If i had been more smart at the time, i could have found a better fixed rate, but there you go.
Two years ago i needed to remortgage (i bought out my newly ex girlfriend) and decided to get out of the fixed rate if i could.
I read through my terms and discovered that if i moved to Egg i would save more than enough to cover the redemption penalties.
So i rang up NatWest to tell them i was going to move. They said they would get someone to call me, and 5 minutes later i was being showered with good offers to make me stay.
The upshot was that i got the same rate that Egg would have charged, and also had my redemption penalties reduced by 60%. The deal i got was 1.10% off the normal rate for 2 years. AND with no redemption penalties, so i am free to move my mortgage when a better offer comes along.
Six months later Egg were undercutting my new mortgage by 0.1%. Its not much, but every little helps.
So i looked at the NatWest site and saw that new borrowers could get 1.25% off the standard rate for 2 years, again without redemption penalties.
I psyched myself up and rang NatWest, and was very indignant. How come new borrowers get a better rate than me? Maybe i should go to Egg. I got a call back sharpish, and was given the new deal "as an act of goodwill". They were keen to stress that this was a one-off and is not normally available to existing borrowers.
I have done this
routine once more, and am now on 1.5% off the standard rate for 2 years, still with no penalties.
Having done some searching around, i cannot find a better deal that does not involve penalties.
So there you have it. Keep your mortgage mobile by avoiding redemption penalties, and make sure that NatWest know you will take your mortgage elsewhere unless they match the best rate available.
PS - if you arent a dooyoo member, and you found this opinion useful, please register and give me a rating. all my points are being donated to charity. thanks.
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