Getting a better deal without remortgaging

If you are a financial instition, then inertia is a very nice word indeed. It is inertia and people not bothering to shop around and change to the best deal they can get that is responsible for a lot of the income that banks get. Indeed, if everyone always acted to get the best interest rate they could, the best mortgage deal they did, then the banking system would probably not be free in this country!

However, because of inertia, then many will let their mortgage revert to their lenders standard variable rate (SVR) after the attractive cut-rate deal for the first typically 2- 3 years has run out. This means that you move from being on a great rate to one that is, probably, not that competitive compared to what is out there on the market.

As we all know, mortgages are complicated products, and researching and then actually remortgaging to a better deal can be time consuming. Even though we know it is financially probably going to be worth it there is still the fact that it is daunting to do and takes time and effort; for those who work hard and want to relax on the weekend the idea of having to traipse around investigating mortgage products can be anathema.

It is also far from straightforward as some mortgages have charges for switching mortgages and leaving your current deal at certain times within the lifecycle of the mortgage so you also need to understand all the various charges that could apply and not just simply work out that bank X offers a lower interest rate so you will be instantly better off by switching.

So, how can you get a deal without having to necessarily shop around and remortgage elsewhere? Well, some lenders are quite keen to retain customers and so just suggesting that you are about to move to a better deal elsewhere can be enough for them to offer you a more attractive rate.

So when you reach the end of your discount rate, then it is worth letting them know you are thinking about remortgaging and then let them tell you if there are any bonuses they can offer you for staying with them (some sort of recognition for your loyalty). It is also particularly galling when some financial institutions have lots of great offers for new customers which makes existing customers feel neglected, so again if there is a good offer for new customers that you are not entitled to you can make your point known vocally and see if it relents its position. You can but ask, as they say!

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Getting a better deal without remortgaging

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