Asking your lender for a better rate
Lenders price new customers more sharply than existing ones, and they generally will not correct that unless asked. Repricing is the shortest path to a lower rate: a phone call, a few days, no fees and no application. It works more often than people expect, and it works better when you ask properly.
Why the gap exists at all
Acquiring a new borrower costs a lender money, so new-customer pricing is sharper. Retaining you costs nothing while you stay quiet. The result is that long-held loans drift above the market almost by design, and the drift is not a mistake or a penalty, it is simply what happens without a conversation. Nothing about it is personal, and nothing about asking is unreasonable.
What to actually say
Ask for the retentions or pricing team rather than general enquiries. Say your rate is above what is currently available, that you have compared, and ask what they can do. Having a specific competing rate makes it concrete. Being polite and being willing to leave are both useful, and only one of them needs to be genuine, though it helps if both are.
What strengthens your position
A clean repayment history, a loan-to-value ratio comfortably under eighty per cent, stable income and a decent balance. Equity matters most: a borrower at sixty per cent of value is cheaper for the lender to keep than one at ninety, and the pricing usually reflects it. If your property has grown in value since settlement, that is worth establishing before you call.
When repricing is not the answer
When the discount offered still leaves you above the market, when you want structural change the lender will not provide, an offset they do not offer, splits they will not do, or when you want to access equity at the same time. Then refinancing does more than a rate cut can, and the refinance checklist sets out the sequence.
Repricing against refinancing
Same objective, very different cost and effort.
A phone call to your lender's retentions team. No application, no valuation, no discharge costs. Frequently produces a meaningful reduction.
A full application at a new lender, with fees and usually a valuation. Worth it where the gap is large or you want structural change.
A low loan-to-value ratio and a clean repayment record are what make you worth keeping. Both are worth establishing before the call.
Ask armed with a comparison rather than a feeling. The loan health check gives you one in two minutes.
Not sure whether your rate is competitive?
Charles can tell you where your rate sits, and whether asking or switching is the better move for your file.
Repricing questions
Will my lender actually give me a discount if I ask?
Frequently, yes. Retention teams exist precisely because losing a borrower costs more than discounting one. The strength of the offer depends on your equity, your repayment history and how competitive your current rate already is. It costs a phone call to find out.
Do I need a competing offer to negotiate?
It helps considerably, because it makes the conversation concrete rather than a general request. You do not need a formal approval elsewhere; knowing what comparable lenders are currently offering is usually enough to have the discussion sensibly.
Does asking for a discount affect my credit file?
No. Repricing is an internal adjustment by your existing lender, not a credit application, so no enquiry is recorded. That is one of the reasons to ask before applying anywhere else.
How often can I ask?
There is no formal limit, and once a year alongside a general review is a sensible rhythm. Asking every few weeks is unlikely to help. A rate that was competitive eighteen months ago frequently is not today, which is why the annual check matters.
What if they say no?
Then you have a clear answer and a decision to make, and you have lost nothing but a phone call. A lender unwilling to price sensibly for a good borrower is telling you something useful about whether to stay.
Related guides
General information only, not credit or financial advice. Professional lending policies, eligible occupations and loan-to-value thresholds vary by lender and change over time. Eligibility is confirmed against current lender policy in an assessment; nothing on this page is a promise that any lender will approve any application.
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