[Finance] Remortgage

[Official Old Man]

Time to remortgage my house as the fixed term mortgage is up. I've been with Natwest for 17 years and had an account with RBS / Natest for over 40 years. Just called them up and I've been offered a rate of 1.98%. New customers get 1.29% but as I've been with them for so long I'm not allowed the low rate!
I'm sure this is quite legal but as I'm now going to move my bank account and mortgage to another bank isn't this plain stupid?

 

[dazzer6666]

Time to remortgage my house as the fixed term mortgage is up. I've been with Natwest for 17 years and had an account with RBS / Natest for over 40 years. Just called them up and I've been offered a rate of 1.98%. New customers get 1.29% but as I've been with them for so long I'm not allowed the low rate!
I'm sure this is quite legal but as I'm now going to move my bank account and mortgage to another bank isn't this plain stupid?

Yep.....perfectly legal. New customers will have a mortgage with them for 20-25 years so they’re anxious to hook them in, you probably won’t, so they don’t care so much. Moving is quite simple, so shop around........

 

[AmexRuislip]

Time to remortgage my house as the fixed term mortgage is up. I've been with Natwest for 17 years and had an account with RBS / Natest for over 40 years. Just called them up and I've been offered a rate of 1.98%. New customers get 1.29% but as I've been with them for so long I'm not allowed the low rate!
I'm sure this is quite legal but as I'm now going to move my bank account and mortgage to another bank isn't this plain stupid?

We had this a few years ago with Natwest, had been with them for years, no loyalty.
Tried to get a mortgage at a lower rate than advertised, ended up going with the Nationwide.
Never looked back, now all payed off.

 

[WATFORD zero]

Time to remortgage my house as the fixed term mortgage is up. I've been with Natwest for 17 years and had an account with RBS / Natest for over 40 years. Just called them up and I've been offered a rate of 1.98%. New customers get 1.29% but as I've been with them for so long I'm not allowed the low rate!
I'm sure this is quite legal but as I'm now going to move my bank account and mortgage to another bank isn't this plain stupid?

Talk to [MENTION=3887]Uncle Spielberg[/MENTION] thumbsup:

 

[Da Man Clay]

Talk to [MENTION=3887]Uncle Spielberg[/MENTION] thumbsup:

Another vote for US. I’ve never stayed with the same company for any more than the fixed rate period. Can almost always better what the current lender offers.

 

[Harry Wilson's tackle]

We had this a few years ago with Natwest, had been with them for years, no loyalty.
Tried to get a mortgage at a lower rate than advertised, ended up going with the Nationwide.
Never looked back, now all payed off.

If you have any savings, unless you have them in a high interest high risk scheme, use all the money to pay off the mortgage. When you switch check you can do this without penalty. I did this rather than switch savings and mortgage to NatWest in the 90s - the crooks did not explain the obvious, that I would be milked by them if I did that.

 

[AmexRuislip]

If you have any savings, unless you have them in a high interest high risk scheme, use all the money to pay off the mortgage. When you switch check you can do this without penalty. I did this rather than switch savings and mortgage to NatWest in the 90s - the crooks did not explain the obvious, that I would be milked by them if I did that.

Hiya, we did just that, put most of our savings to be free of mortgage.
Now have a second job as a busker, doing a turn outside Faversham Natwest next month.
All for the retirement master plan

 

[Shropshire Seagull]

Financial institutions don't give a monkeys about customer retention - it's all about creating new business by luring customers from competitors.

The irony is that the loyal customers they lose move over to, errrr, their competitors, but none of them are brave enough to switch to long-term tactics and focus on retention. The nearest they come to that is a 5-year fixed rate for errrr, NEW customers. Once they've had your 5 years, they are more than happy for you to bog-off to the competition - #madness

Quick-buck-today mindset unfortunately ...

 

[Arthritic Toe]

Financial institutions don't give a monkeys about customer retention - it's all about creating new business by luring customers from competitors.
...
Quick-buck-today mindset unfortunately ...

Very true. I've just switched my current account to Natwest for the £175 switching bonus. Are they really going to recoup that amount from me in terms of business? I find it very hard to believe that they will.

 

[happypig]

If you have any savings, unless you have them in a high interest high risk scheme, use all the money to pay off the mortgage. When you switch check you can do this without penalty. I did this rather than switch savings and mortgage to NatWest in the 90s - the crooks did not explain the obvious, that I would be milked by them if I did that.

No. Don't pay off your mortgage, put any spare into your pension, it's more tax efficient.

Bear in mind, however, that I'm a retired telephone engineer so not 100% on the financials.

 

[dazzer6666]

No. Don't pay off your mortgage, put any spare into your pension, it's more tax efficient.

Bear in mind, however, that I'm a retired telephone engineer so not 100% on the financials.

Not necessarily the case - certainly not without knowing the OPs current tax and pension situation...................

 

[swindonseagull]

Hiya, we did just that, put most of our savings to be free of mortgage.
Now have a second job as a busker, doing a turn outside Faversham Natwest next month.
All for the retirement master plan

You could always play along with the Oompah band!!


And yes it’s so nice being mortgage free..

 

[drew]

Don't understand why the OP is thinking of switching bank accounts just because of the mortgage. Keep the bank account where it is and save the hassle. You can have a mortgage with others without having to switch accounts. Have you had the same mortgage for 17 years, if so, you've probably been paying well over the top. However, assume that you have a short fixed term mortgage and have switched several times over those 17 years. My own experience was to switch ever two years as that seemed to be the minimum time before you could replace it without penalty (other than arrangement fees for the new mortgage).

 

[lawros left foot]

I hope [MENTION=21200]I remember the good times[/MENTION], isn’t TBs user name.

 

[Uncle Spielberg]

Happy to help search the market for you. I am on

Website

www.blueandwhitemortgages.co.uk


US/GG

 

[Uncle Spielberg]

Nat West have reduced their rates this week so make sure to relook. 1.48% fixed for 2 years to 60% ltv, £ 999 fee added

It is getting more and more the case that people are getting new rates with their present lender as they are near the best market leader rates generally. I find usually it is a re mortgage when people look to raise more money or want a rate that their lender won't have or want to change the term or type. It takes 6-8 weeks to re mortgage and far more work than a product transfer and the " free legals " are generally from poor to diabolical

 

[Uncle Spielberg]

Financial institutions don't give a monkeys about customer retention - it's all about creating new business by luring customers from competitors.

The irony is that the loyal customers they lose move over to, errrr, their competitors, but none of them are brave enough to switch to long-term tactics and focus on retention. The nearest they come to that is a 5-year fixed rate for errrr, NEW customers. Once they've had your 5 years, they are more than happy for you to bog-off to the competition - #madness

Quick-buck-today mindset unfortunately ...

Not true with mortgages anymore

 

[Official Old Man]

email sent to Uncle Spielberg.
I should point out that I'm self employed and any banks worst enemy. In 2002 Natwest gave me £250000 when I was flat broke because my Father knew the right man to ask (rolls up trouser leg). I've tried to move around but most banks don't want to know. Now I've a few quid but still self employed. Never missed a payment and I've got a credit rating of 999 maximum, which again works against me.

 

[Beach Seagull]

Slightly different question: What happens if your mortgage is due for renewal and you have recently been made redundant and you either have no income or a reduced one compared to the one when you first took out the mortgage?

 

[Uncle Spielberg]

Slightly different question: What happens if your mortgage is due for renewal and you have recently been made redundant and you either have no income or a reduced one compared to the one when you first took out the mortgage?

You should still be able to get a new rate with your present lender, I can help if you need. Obviously you could not re mortgage