What happens if fixed rates go down between application and taking mortgage out?

Heth_2

Sorry, i've got another question...
Was just reading a thread about whether rates will go down or not, and looked on the Abbey site and the fixed rate we were going to take out (4.94% for 5 years) has now gone down to 4.84%. We filled the mortgage application form in on sat, when we take out the mortgage will we get the old rate or the new one? Obviously doesn't make a massive difference, but it would be 420 pounds over the 5 years...
Cheers!

darktrader

A mortgage offer with conditions attached has a finite time to run - 3-6 months. The offer is fixed so you will get what both parties have agreed to. However, there's nothing to stop you raising this with the lender to see if you can cancel one offer and opt for another.

Heth_2

darktrader wrote:

A mortgage offer with conditions attached has a finite time to run - 3-6 months. The offer is fixed so you will get what both parties have agreed to. However, there's nothing to stop you raising this with the lender to see if you can cancel one offer and opt for another.

We don't have an offer yet though, we just applied for it. Guess we could phone the mortgage advisor but she was already cross today as we told her we didn't want the abbey insurances.

apples1

When you receive the mortgage offer in writing fom them it will say how long its valid for. You then get that rate anytime you proceed during that specified time. This protects you if rates were to go upb so thats good. Your offer should be for their current rate (i.e the lower one you mentioned). Once you have that offer in writing it is worth reapplying if rates go down again before you take up the mortgage. Don't keep reapplying everytime rates change, just if you find dream home and all going ahead I would just see if you can reapply for current rate if lower. good luck - remember to enjoy it!

AndrewSmith

If you haven't got the mortgage offer yet then you may well be entitled to take the new lower rate.

There are a few lenders (Nationwide for example) who will allow you to change product post offer - pre exchange by simply filling out a material changes form.

As for the advisor being cross as you haven't taken their insurance well thats their hard luck I'm afraid.

They have a duty of care and an obligation to get you the best rate available. If that means another 15minutes of paperwork for the advisor then so be it.

Insist that it it looked into.

Andy