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Mortgage Renegotiation
I have a 20 year FIXED RATE MORTGAGE with Belfius @ 4.4%.
10 years paid already, 10 to go. 120k remaining on the loan.
Last week i finally went to discuss a renegotiation with them.
They would only drop it by 1% . Spinning me their yarn that they can not offer me their current rate of 2.81% (even though on their website they are offering 2.3%) because it's a Renegotiation, not a New Mortgage. I wouldn't mind be it's one of several loans i have with them, i'm a very loyal customer, as i told him. Still no joy, he played hard ball.
Seems pretty rubbish given rates are at an all time? What are your views/ experiences folks?
I see on various banks websites they are offering...
ING - 2.25%
Immotheker - 2.2%
BNPFortis - 2.4%
If it's a renogotiation, does that mean that there are minimal costs to change the rate?
I changed my rate from 4.5 to 2.8 with ING last year. But I had to pay around 1500 euros in costs.
Your options are to accept their proposition if the costs are minimum (say around 250 euros), or go through the process of gettting a whole new loan with them or another bank (with high bank and notary costs), but at a much lower rate.
I decided to pay the high costs because the savings were significant long term. But now there is a good chance that I'll have to sell my house, well before I have saved enough to cover the up front costs. So even if you think that you'll stay in your home for the next 10 years, there is always a risk that you won't. Going to 3.4% without a big investment might be worth it.
Ask your bank what the early repayment fee would be and armed with this information, go to see a couple of banks or brokers and get them to give you a simulation of what it will cost you per month with all costs included.
If that compares favourably to what you'll be paying with your current bank, tell them to get stuffed :-)
Immotheker are usually pretty good at finding good deals, but they are not always as cheap as going to a bank direct.
3 weeks back i renegotiated my existing loan with ing, and they offered me 2.03% for 20 yrs loan.
and the loan rates have not changed in last 3 weeks, so i think ing can easily give you a similar rate
get a offer and then go back to your original bank, they normally match or come quite close to the offer proposed by another bank
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