Bank secret: 1 telephone call can reduce your debt payment by hundreds of PLN.

In a time of advanced interest rates and rising cost of living, the monthly mortgage payment is 1 of the biggest burdens on home budgets. Many borrowers accept the conditions imposed by the bank without realizing that the credit agreement, although concluded for many years, is not etched in stone. There is simply a mechanics about which banks do not study loudlyand whose cognition can bring savings hundreds or even thousands of zlotys per year. We're talking about possibilities. renegotiation of the credit margin. Moreover, the full process can frequently be initiated only by one telephone call To his bank. This is the cognition that financial institutions are reluctant to share due to the fact that it straight affects their profits

What is simply a margin and why can the bank lower it?

To realize where our money is hidden, we first request to spread the interest rate on the first factors. It consists of 2 main elements:

• Reference rate (e.g. WIBOR or WIRON): This is simply a variable part of the interest rate depending on the interbank marketplace situation and the decision of the Monetary Policy Council. Neither the client nor the bank have a direct influence on its size.
• Bank margin: This is simply a fixed part of the interest rate, which represents the bank's pure profit for lending. Its amount shall be determined individually erstwhile the contract is signed and, in principle, shall stay unchanged throughout the credit period.

And that's where the key to savings lies. Unless the WIRON rate is affected, that is the bank margin is full negotiated, besides many years after the commitment. Why would a bank that makes a profit on a margin agree to lower it? The answer is simpler than it seems and is based on pure business calculation.

First of all, loyalty and reduced risk. Client who repays the debt on time by 5, 7 or 10 yearsis a proven and reliable client for the bank. The hazard associated with its operation is much lower than on the day he took out the loan. Secondly, market competition. The cost of acquiring a fresh client is much higher for the bank than the maintenance of the current one. If another bank offers better refinancing conditions (credit transfer), it may be more profitable for our bank to lower the margin and keep us at home than allowing us to leave for competition.

"One telephone call" in practice. How do you prepare to talk to the bank?

Formulation ‘one phone’ is of course any simplification, but perfectly reflects the essence of the first step. It's the call to the bank's hotline or to his advisor that starts the full process. However, to be effective, this conversation requires solid preparation and strong arguments.

Step 1: Analysis of your own situation (Your bargaining cards)
Before you call, get the ammo. Your negotiating force is:

• Fixed-term repayment: If you haven't had any delays in paying your instalments for many years, that's your strongest argument.
• Long internship as a customer: The longer you stay in a bank, the more valuable you become.
• Good communicative in BIK: Check your study at the Credit Information Office. Pure past is proof of your integrity.
• Increase in property value: If the value of your flat or home has increased since the debt was taken, the LTV ratio has decreased (the ratio of the debt amount to the collateral value). This means little hazard to the bank.

Step 2: marketplace investigation (outside arguments)
See what margin another banks offer for fresh mortgages today. If it is much lower than yours, you have another powerful argument. You can simply say, “Your competition present offers an X-level margin, and I, as a loyal client for years, have been paying Y. I am considering a credit refinancing.”

Step 3: Making a telephone call and submitting an application
Call the hotline and ask for the folding procedure ‘request to reduce the mortgage premium’. The consultant will show you further steps. Most often, this involves submitting a formal letter via online banking or in a branch. All arguments raised must be included in the proposal.

Who has the best chance of success? Profile of the perfect client

Although anyone can try, there are customers whose requests are considered almost priority. People who:

• They pay off the mortgage from at least 5 years.
• They never had late payments.
• They have another products in the bank (account, credit card, savings).
• Their financial situation has improved since the debt was made.
• They took credit at a time erstwhile margins were historically high.

For example, a simplification in the margin of 2.5% au 1.8% at the amount of credit PLN 300 000 for 25 years may mean a lower payment by more than 150 PLN per month. Year by year this saves money 1800 złand tens of thousands of zlotys throughout the remaining debt period.

Expert comment: Why are banks not talking about it?

Financial institutions operate on the basis of maximum profit. The credit margin is 1 of the main sources of their revenue. It is so natural that the bank will not actively inform hundreds of thousands of its customers about its ability to pay less. That would be against business logic. The banks presume that a client who is not aware of his rights or has no incentive to act will passively pay a fixed amount throughout the contract.

The full secret is to change this dynamics. The client who is armed with knowledge, prepared in substance and aware of his value for the bank, ceases to be a petent and becomes partner in negotiations. The banks are well aware that the rejection of a legitimate loyal client request may consequence in its transition to competition, which yet represents a greater failure to the bank than a simplification in the margin. This 1 telephone is not a magic trick, but an act of consumer awareness that restores the balance of power in relation to a powerful financial institution. It's a cognition that banks don't truly like due to the fact that it costs real money.