Working Smarter Not Harder
It's all about competition for your business. Just look how many different mortgage deals and companies there are touting for your business. And it's a well known fact that attracting new business costs up to 5 times the amount of keeping hold of present clients.
So instead of working the phones, internet and perhaps the High Street for a better deal, do a little bit of research into what kind of deals your present mortgage company is offering to new clients (chances are they will be a lot better than your present deal) and then ask them to match it. But you must have some leverage, that being the threat of moving your business elsewhere 'if you can't match the deal then ABC bank or XYZ likely will'.
This is why a strategy such as asking is all about working smarter and not harder.
Business Retention Rates
If you present lender won't offer you a similar deal to the one that's offered to new clients then it's worth asking if he'll offer a 'business retention rate'. This is mortgage speak for a special deal (cheaper than your present but not as good as a new business deal) which is aimed solely at trying to keep hold of current clients. Again, there is some room for negotiation here so never accept the first deal that's offered (unless it's clearly very good), instead take some time to mull it over and compare it with what else is available on the market.
Try and do this negotiating several months before your current mortgage deal expires because you never want to rush important financial decisions. Perhaps you should also consider using a mortgage broker combined with your efforts in contacting your current lender. Again, never forget that your business is business that everyone wants, not the other way around.
Summary
Two of the main reasons why people don't want to remortgage are the fees levied and the hassle factor. By phoning and asking for a deal the hassle factor is virtually removed (along with a lot of paperwork) but still expect to pay some fees on any remortgage deal. But the good news is that if you stay with your current lender fees are likely to be a lot cheaper than if remortgaging with another lender.
So with a few hours research into the current mortgage deals on offer combined with some telephone calls to your present lender it really is possible to save some extra money on your monthly mortgage payments. And as we stated in the beginning don't discount the strategy of simply calling and asking for a better deal with any other financial products you have.
Calling and asking works best when the market is highly competitive and you can use this as leverage against the company in question. In a nutshell, please match the deal of a competitor company or I'll do business with them instead of you. Don't feel sorry folks because it's nothing personal, just business........
Useful Links
