Negotiating a rate decrease with building society

[ChrissieKeller61]

Basically we've been stuck on the standard variable rate of 4.89% for 13 years, interest only.
Has anyone ever negotiated a rate drop please ? Any tips. The whole thing is a shit show, paid over £156,000 in interest, they've had enough surely.

Why are you unable to switch to a new deal?

Have your circumstances changed so you now don’t meet affordability criteria?

Mine and my husbands job situation changed and we were unable to move to a new provider, however we were able to move to a new deal with our existing supplier as they don’t do new affordability checks.

I know we definitely can’t remortgage but that’s what I’m hoping they’ll do is switch deals.

Most lenders have specific mortgages for existing customers (I'm afraid I'm having a complete brain freeze and can't think of the right word for it right now). Most lenders will allow their customers to switch to these products without a new credit check etc being performed if you've kept up with your mortgage repayments (so long as you are not borrowing any additional money). Have a look on their website, there should be information on there.

I should add that the rates on these mortgages are usually a bit higher than their standard mortgages, but should still be less than the standard variable rate!

Thank you pink

Hi Chrissie, you might find you can switch mortgage providers. The FCA relaxed the rules for existing mortgages to switch to a new company, if they are able to meet the repayments on their current mortgage on SVR then they are demonstrating they can meet repayments on a new product rate, which will generally be lower than the rate they are currently on. This is even where they wouldn’t pass normal affordability assessments.

Also, your current mortgage provider should be able to offer you a switch to one of their current products. Often they will have better deals for product switches, like no or reduced fees.

Just noticed you are interest only. There will be less options for you in that case, although if you go through a broker they could probably help. You should consider switching to a repayment mortgage if possible.

I pay over £1000 in interest currently I’m happy to keep paying that but on a repayment basis if they’ll switch. Going to call them on Tuesday just wanted to see if it was viable or I was kidding myself first. Thank you for the tips

Christie, I'm amazed by this. Have you tried to move before ? Why won't they let you switch - do you not meet affordability ? Do you have arrears ? I would be seriously considering the ombudsman, writing to your MP and every newspaper...

Are you with a regulated lender or are you a 'mortgage prisoner' (someone whose mortgage was with northern rock or similar where the mortgages have been sold on to third parties?) There was an interesting article about this in the Times today. If you are stuck, then I understand there is a class action being pursued with the law firm Harcus Parker - it may be worth contacting them for advice.

@deadpriarated I’m so angry about it. There have been arrears yes and three times I’ve cleared them in full and nobody said a word about moving us on to a better deal which I feel should have happened the first time as I was clearly struggling. It is affordability I’ve clawed my way back up to earning £50,000. March would have been the third month of payslips I could prove and now this so I don’t think I’ll get the mortgage. It’s Allisnce and Leicester I’m with ... thank you I think it’s just wrong but I suppose I would

My original mortgage was Alliance and Leicester, they were bought by Santander so mortgage is now with them but has an alliance and Leicester number. It’s very easy to switch to a new Santander deal (we no longer meet affordability but can still switch as they don’t ask for financial documents).

Go to www.santander.co.uk/personal/mortgages/existing-customers/change-your-mortgage and look under changing deals

Spoke to them today and asked why there has been no mention of the follow on rate ie the better one, apparently the onus was on me to request it. I have put in a complaint though that no offer was made to help as I did flag I was struggling several times, I guess i'll see what the outcome is there. Thank you very much for the replies.