can providers increase rate before end of offer

maznaq

just wanted to ask, is it normal for mortgage providers to increase their rate 3 days before the end of mortgage offer? our buyer wants us to reduce the price as halifax (his provider) have increased their rate. is it normal?

Madjock

If you are not going to complete before his offer expires then yes, he may very well have to go on another (higher rate) product. I think he's a bit cheeky myself tbh, and I'd say no.

space_rider

I thought Halifax rates were reducing. Could it be that the valuation is less than the accepted offer price?

dunstonh

Lenders alter their rates on bulk. Not to individuals. Once the deal has been bought and the offer letter produced then you have that deal providing no unforeseen issues and the money is released before the deal expires.

It is possible that the deal has expired and the new deals are not as good as before. Although terms have generally improved. Its more likely that the buyer is trying it on. Its known as gazundering.

misscharlie

Could I be nosey and ask 1) how long since they put the offer in to the stage your at now? and 2) how much is he asking off and at what purchase price. Just been nosey so tell me to p** off if i am lol

maznaq

well the offer was given in feb. we have had a nightmare with our lease; had to get a new plan done and our solicitors have been so slow, they dragged it on for 6 months. they initally told us 15/08/08 was the last day of the mortgage offer and now we're told its 22/08/08, which is tomorrow. our solicitors havent said anything, but he's going through the estate agents. he says he has a mortgage offer letter to prove this, which we've asked to see. he's claiming he would be paying an extra £5000 per year which he wants from us, but we're not giving more than £2000. our purchase price was £234.

Have no idea what to do, i think its going to drag on longer was hoping to move out by last friday!!

silvercar

It sounds reasonable that a lender would extend an offer by 7 days. It doesn't sound reasonable for a lender to extend an offer for (just) 7 days and say the rate will go up. If they were issueing a new offer it would be valid for 3 months not 7 days.

misscharlie

Personally I think you should take it and run. Most houses ahve lost far more than 5k in 6 months. I think you should count yourself lucky as it was your soliciters dragging there heels. Just me personally though. I just wouldn't risk 5k for the whole sale of your house given the current state of the market.

maznaq

just an update, we've come to an agreement to reduce the price by £4000 if the exchange of contracts and completion is done by tomorrow! I've had enough! it seems his offer expired on 15th now he's being charged a higher rate. he's trying to get a better deal, should hear back today otherwise god knows... we've been given such mixed information, its so confusing!

dunstonh

maznaq wrote: »

just an update, we've come to an agreement to reduce the price by £4000 if the exchange of contracts and completion is done by tomorrow! I've had enough! it seems his offer expired on 15th now he's being charged a higher rate. he's trying to get a better deal, should hear back today otherwise god knows... we've been given such mixed information, its so confusing!

He will need a new offer letter if the price reduction will impact on the level of borrowing taking place (same if it changes the deal). If there is no impact on borrowing then its fine.

So, if it does impact on the borrowing there is no chance of it completing tomorrow.

maznaq

WE HAVE EXCHANGED CONTRACTS YESTERDAY!!! so happy our completion is on 27th!! gosh we are never buying leasehold property again!!!! now just need to find a place to live! thanks everyone for advice!