Here are a bunch of tips for you who are going to negotiate a mortgage. Maybe some of the stuff you read here gets stuck and becomes something you’re craving to test. Hopefully, the tips can also help you get as good a mortgage as possible.
The very first thing to do is to investigate what the market looks like
This is something you have to do before you even begin to negotiate with any lender so that you really have control of the situation.
Information about the different lenders ‘interest rates and other things you can find, for example, on sites like this, the lenders’ own websites, in newspapers, etc. If you also know people who have obtained mortgages in recent times, you can talk to them to find out what opportunities they had to bring down the prices.
If you are in control of the situation and should contact a lender, the next step is to consider your arguments in order to bring down interest rates. Here are some examples of just such arguments that hopefully can help you. Not everyone is suitable for everyone and there is nothing to say that they succeed but they may very well do it.
Interest rate a ceiling
Tell the lender that the interest rate they have in their tables should only be seen as a ceiling. The proposal you want to get from the bank should be lower in your opinion. A good thing is if you can give examples of other people who received a lower interest rate from the same lender.
If you have a good credit rating, you should pass this on to the lender. Show that you have a good and safe job. If you are attractive in the labor market, this is also a big plus. A good and stable salary increases opportunities for a good loan.
If you have previously saved money regularly, this is something the lender will be happy about as it shows that you are a person who has a good control of the finances. In the eyes of the lender, such people are generally better at managing the payments of loans.
If you have a previous savings, salary account or any other form of banking service with the lender, you can emphasize that the plan is to keep them there if you get good loan terms. If you contact a new lender, you can instead say that you intend to move all of this to that particular lender if it provides good conditions.
If your bank wants to keep you, they must also treat you well, for example by giving you a little discount on the mortgage. However, if the argument does not work, you should not refrain from being unfaithful, but then you only have to move everything if you get better conditions in another place. If your current bank doesn’t care about your allegiance, you shouldn’t feel that you need to be true to them.
A lender doesn’t really want you to pay off a loan faster than it is supposed to, as they won’t make as much money then. But if you propose this, there is a chance that they feel compelled to offer good terms when you show that you intend to take responsibility for your loan in a good way.
Negotiate the valuation
Should you increase the loans on the home you already have, it is common for the lender to want you to pay for this valuation. However, if it is certain that your previous loans do not exceed 70% of the market value, you should not pay such a valuation. If so, the lender should pay.
Surrounding costs such as setup fees or other fees can often be bargained for. If it is a large loan, the lender will receive large income anyway and then there are good opportunities to succeed in getting rid of these relatively small costs.
Should you obtain a mortgage with a fixed interest rate, you have a better negotiating position than if you intend to take one with a variable interest rate. This is because it is more difficult to move a loan with a fixed interest rate. A mortgage with a variable interest rate can be moved at any time to someone else. If you have a fixed interest rate, the loan can only be moved smoothly when it is time for a new term. It is also possible to transfer a fixed loan at other times, but then you will have to pay an interest payment.