Why don't more borrowers switch mortgage provider?

You seem to be on a PPR rate for the BTL?
If the mortgage is 90K then I guess that you're < 60% LTV in which case can't you get 3.5% or 3.6% variable depending on the term?
Or one of the lower fixed rates c. 3.5%?
 
The saving is not great enough for me to want rock any boat plus I want to be in a position to pay off whenever I want.
 
Brendan Burgess said:
A big reason for not switching omitted from the first post, is that many mortgages are just too small and have only a few years left.
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Fair point but I suppose a mortgage with a relatively low outstanding balance or term probably falls within the "not worth the hassle" category, from the perspective of both the lender and borrower.
 
elcato said:
The saving is not great enough for me to want rock any boat plus I want to be in a position to pay off whenever I want.
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What boat are you trying to avoid rocking?

Have you worked out the potential savings before deciding that it's not worth the hassle? Why would switching to another variable rate mortgage stop you paying off whatever you want (also I believe some fixed rate mortgage providers do not penalise borrowers for making payments ahead of schedule)?

It's obviously your decision but remember that customer inertia is a banker's best friend.
 
Sarenco said:
Fair point but I suppose a mortgage with a relatively low outstanding balance or term probably falls within the "not worth the hassle" category, from the perspective of both the lender and borrower.
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I think it's worth distinguishing between those who could save money by switching but don't, and those where the costs of switching exceed the savings in interest.

Brendan
 
Sarenco said:
What boat are you trying to avoid rocking?
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The boat that Clubman pointed out that they could potentially query whether it's still my PPR.
Sarenco said:
Have you worked out the potential savings before deciding that it's not worth the hassle?
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Yep.
I am in a position to pay it off now but will wait till I move back into it. (This timeframe is hard to pin down right now but is not expected to be more than a few years.) I believe cash is king for the moment so prefer to have savings at a cost than to have to go back to the days of proving to the bank that you don't need the loan your applying for in the first place.
 
Brendan Burgess said:
I think it's worth distinguishing between those who could save money by switching but don't, and those where the costs of switching exceed the savings in interest.

Brendan
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Agreed but each of Ulster, BOI and KBC (who I would suggest have the most attractive offerings at the moment) now offer a cash-back incentive that should more than cover the cost of switching in virtually all cases.

However, notwithstanding the fact that the cash back incentive may cover the cost of switching, there will obviously still be circumstances where the amount outstanding and/or the remaining term are such that proceeding is simply not worth the time and hassle, from the perspective of either the borrower or lender.
 
elcato said:
I am in a position to pay it off now but will wait till I move back into it. (This timeframe is hard to pin down right now but is not expected to be more than a few years.) I believe cash is king for the moment so prefer to have savings at a cost than to have to go back to the days of proving to the bank that you don't need the loan your applying for in the first place.
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Understood.

This strikes me as a relatively expensive way of retaining a degree of flexibility or optionality but you've obviously thought it through.
 
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