Change interest outside fixation anniversaries. These are rare cases, but they happen. In that case, you sign a mortgage contract amendment.
Possibilities of mortgage interest deduction
Change interest on anniversary fixation. If the bank offers you good interest automatically, you don’t have to sign anything. If you have negotiated better terms, then you need to sign a mortgage loan amendment in some banks, specifying the conditions under which you will receive preferential interest (most often by sending an account or changing the account type).
Repayment with a new mortgage in the same bank. In this case, you sign a new credit agreement. A few banks allow their clients to take a new loan to repay an old mortgage loan within the same bank. If they can’t give you a better rate in a different way and don’t want to lose you, they’ll let you. Some will even allow you to stay out of fixation and will forgive you a discount for early repayment of the old mortgage.
Standard refinancing and repayment with a new mortgage from another bank. Everyone knows this. You take a new mortgage in another bank and repay the old mortgage in the original bank. To do this, you sign a new mortgage contract.
With the offer for a mortgage from another bank, it is easier
If you are going to negotiate and want to increase your likelihood of success, without a competitive bid from another bank, you will find it harder. An offer that has a greater weight and your bank will take it seriously is one with your name and details.
However, competing banks are very reluctant to offer such offers to their clients who want to refinance their mortgage. In some banks, even employees are strictly forbidden to do so and will only give you an offer without a name. They know that when you come to your bank with the offer, they are more likely to call you and they would lose their business.
If you want to redo this offer, you must convince the bank employee to issue you such an offer, or if you have someone in your bank who is known to you, you can ask for it and there is a chance that it will suit you.
Another option is to reach a financial intermediary who can prepare you a specific offer with a name and your data from almost every bank and you can use it to negotiate with your bank.
Overview of mortgages from all banks
If you have an overview of mortgages from all banks, you can easily evaluate and compare whether the current interest on your mortgage is beneficial to you or not. It is ideal if you do it or have it done before you start negotiating to lower your mortgage interest in your bank.
You can circulate all banks alongside your work or you can simplify it through your financial intermediary and take advantage of his experience. Anyway, if you force your bank to lower your interest on the mortgage, you will certainly pay less.