Lenders don’t particularly like to take risks, which means that a good credit rating is good to prove. For example, if you have a stable job within a profession that is stable in the labor market, this is positive. Furthermore, for example, having saved money increases your credit rating. If you were unemployed or have payment remarks instead, this would have a negative impact.
For the lender it is therefore a good idea to show that your finances are in good condition as this will make the bank feel more secure. And as we mentioned before, lenders don’t like to take risks, which is not to lend to you and thus the interest rate can be a little lower.
As I said, lenders do not like risks and therefore saving is something they like sharply. If you have saved money regularly for an extended period before it is time for the negotiation, this is a big plus. You show in this way that you take responsibility for the economy something that can only be seen as positive. It is no wonder, then, that a lender is more doubtful about a lower interest rate for a person who barely has a few bucks left in the account at the end of each month.
Show yourself to be faithful
The banks make money in a variety of ways, which means that they are happy if you have several services with them. This can be things like savings, payroll, shares, funds etc. If you can show this to your current lenders, chances are they will agree to a lower interest rate as you are a loyal customer.
If you are thinking of switching banks with your mortgage, it is instead a good argument for getting them to offer a low interest rate. If you say that you move all services to them you have a good position. Moving banking services to another bank should not be a problem at all, but they will help with this.
We humans like to be true to things, but it must not be an exaggeration. Therefore, you should not feel any extra loyalty to a lender who does not offer you the best prices. Instead, transfer the services to another lender if you make money on this. You should only think of yourself not anyone else.
For new loans, it is not uncommon for a lender to charge a setup fee. This and other smaller costs that lenders may want to charge can often be bargained for. Because they will make a large amount of money in total on the loan and that you should therefore avoid this small cost.