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Renegotiate Mortgage Rate
Hello all.
I have a fix rate mortgage for 20 years with BELFIUS BANK, with -/+ 11 years remaining.
The rate i got at the time was 4.2%.
But with rates at an all time low, I am going to renegotiate with my bank tomorrow.
Can anyone give me an indication of what rate i could expect to get on a 10 year fixed mortgage?
Early indications from informal talks with them would suggest they may go to 3.3%. Still seems high?
It really would be appreciated. Thank you so much.
I got quoted 3.2% for fix 20 years. Back in January was 2.4%.
So, for 10 years, I guess even less, but there is a website that tracks that, Immotheker, "Barometre des taux"
10 years fixed = 1.96% (average)
The rate the bank offers you will depend on the costs that they charge you. If they charge you a 'simple' renegotiation fee, 'file' fee for example of around 300 euros, the rate will be around 3%. If you pay more in fees, similar to the amounts when you first took out the loan, the bank will give you the market rate, closer to 2%
We got a fixed rate of 1.35% for a 10-year loan, in January 2015. However, I know that in general new clients get better rates (we were new clients).
I am in the same situation, ie ready to renegociate my mortgage, purchased 10 YEARS ago with 10 years remaining... Is it worth getting a valuation done of the current market value of my apartment in order to use this to help get a better rate of interest? Would this impact the rate?
THANKS
For a 10-year loan with a mortgage and obviously not covering 90-100% of the property value, you should look for an interest below 2%. If not, better check with other banks.
@SuzanneDuffy
I cannot see how getting a valuation done will make any difference.
The lender needs to be confident that the value of the property exceeds the debt. If the debt is €100K, the fact that the value is €150K, or €250K or, even, €500K is irrelevant.
