Discounted rates not being passed on?

[Rudolph]

Just wondering if anyone else has had a similar experience to myself when I took out a mortgage a couple of years ago. At the time there was a discounted/promotional rate available for the first year of the mortgage. I was not aware of the discounted rate and the financial institution concerned did not make me aware of it. In fairness to that institution when I found out about this rate a few months later and challenged them on it they passed on the full benefits to me and couldn't understand why the rate was not given to me in the first place. The individual I was dealing with had left the institution in the intervening period.
I just wanted to warn people to make sure that they get the discounted rate if they are entitled to it and I was also wondering whether I was just unfortunate or have other people had a similar experience?

 

[ClubMan]

I was also wondering whether I was just unfortunate or have other people had a similar experience?

Caveat emptor. It's not the lender's job to get you the best deal on offer - it's your or your broker's job.

 

[Rudolph]

Thanks for that insightful comment, Clubman. I fully accept that I should have been more aware, at the time, of what I was entitled to. But I think that if a legitimate offer is available, which I am entitled to, the onus should have been on the official to make me aware of this. This was borne out by the subsequent actions of the institution. I would like to think, possibly mistakenly, that there is a certain onus on financial institutions to give appropriate advice to customers/potential customers and not to rip them off.

 

[room305]

I would like to think, possibly mistakenly, that there is a certain onus on financial institutions to give appropriate advice to customers/potential customers and not to rip them off.

If I go to purchase a new car and offer to pay the sticker price without asking any questions, should the salesman be obliged to inform me that they have a trade-in deal running or that a discount could easily be negotiated for cash?

 

[ClubMan]

Thanks for that insightful comment, Clubman. I fully accept that I should have been more aware, at the time, of what I was entitled to.

Good to see that we agree so.

I would like to think, possibly mistakenly, that there is a certain onus on financial institutions to give appropriate advice to customers/potential customers and not to rip them off.

Where exactly is the rip off here? They display their "prices"/offers and the onus is on the customer to apprise themselves appropriately.

 

[bobk]

Rudolf, discount rates are not always advised.

While they may sound attractive for the length of time the discount lasts, chances are you will be going onto a much higher rate when the discount ends.

For instance:

1 year discount of 4.19% will revert to either the variable of 4.95%, the tracker of 4.75% or any of the fixed rates.

However, you could have the 4.5% tracker from day one.
If you take the discount, you lose that option

Banks don't care what rate you take and while you may be correct in saying that everyone is entitled to a discount (depends on the lender) you are wrong to suggest that everyone should avail of it.