Is it possible to negotiate mortgage interest rate?

Bob24 · 18-07-2018 11:38AM #1

Ok so I have a mortgage with AIB and they are competitive for variable rates but way more expensive than Ulster Bank for fixed rates.

I’d be inclined to go for a fixed rate but because of that difference it wouldn’t make fianancial sense to do so with AIB.

My question is: is it a thing to go to a bank and tell them their rate is not competitive - and ask if they are willing to match another bank’s rate or at least move closer to it? And should I expect a positive answer from them? (I think my mortgage is a good deal for them as it is probably an average sized loan but with a pretty low LTV and 2 people on it with secure jobs, so very low risk).

I know at least of one other European country where it is common to do that and in this situation banks will basically offer a rate 0.1% higher than their competitor as they want to keep the business and know that for 0.1% difference 99% of people won’t bother with the hassle and possible cost of changing mortgage provider. But haven’t heard of this being done here.

colm_c · 19-07-2018 12:54PM

I did it back in 2014, got the variable rate reduced by 0.2%

Don't think it will happen now, but worth asking.

Bob24 · 19-07-2018 02:09PM

colm_c wrote: »

I did it back in 2014, got the variable rate reduced by 0.2%

Don't think it will happen now, but worth asking.

Cheers. They are 0.45% higher and if they could reduce it by 0.3% that would work for me as I wouldn’t bother changing provider for 0.15%. I might give it a try.

iluvfatfrogs · 19-07-2018 11:48PM

Bob24 wrote: »

Cheers. They are 0.45% and if they could reduce it by 0.3% that would work with me as I wouldn’t bother changing provider for 0.15%. I might give it a try.

Let us know how you get on

man_no_plan · 19-07-2018 11:55PM

iluvfatfrogs wrote: »

Let us know how you get on

Tried it last year, happier to see me go to the other bank than to move me onto a better rate.

The lad in the branch was sound but said it was up the way that they wouldn't entertain it.

If I had been switching to the rate I wanted there would have given me 3 or 4k. But if we learned anything over the past few years it is that the banks know exactly what they are doing ðŸ™„

banjostring · 22-07-2018 05:22PM

Bob24 wrote: »

Cheers. They are 0.45% higher and if they could reduce it by 0.3% that would work for me as I wouldn’t bother changing provider for 0.15%. I might give it a try.

Hi did you try this approach to see if AIB would reduce their fixed rate for you ?
I’m in a very similar position to you

Bob24 · 22-07-2018 10:00PM

banjostring wrote: »

Hi did you try this approach to see if AIB would reduce their fixed rate for you ?
I’m in a very similar position to you

Haven't tried yet as I've been busy recently and not in a rush.

But what I was thinking was calling the mortgage customer service number, explain the rate difference to them, and tell them that given the large difference in monthly repayments I can't stay with AIB with the rate listed on the website. And ask if they would match that rate to make me stay.

Henry Ford III · 23-07-2018 01:43PM

I doubt they'll discount, but the only way to know for sure is to ask them.

Is it possible to negotiate mortgage interest rate?

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