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Can I change my Lender last minute?

We are first time buyers currently in the process of buying a house, we have a mortgage offer from the Halifax at the moment (fixed rate for 5yrs at a rate of 6.59). We are not far off completion, however we have noticed all these deals for fixed rates at 3.49% with other lenders. Are we able to change from the Halifax now so we can benefit from the new deals?
Also if the Halifax have better deals can we ask to stay with them but change the fixed rate?

Thanks

Comments

  • Kaz2904
    Kaz2904 Posts: 5,797 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    edited 26 April 2009 at 1:17AM
    It depends how far from completion you are and whether or not you can get the money from the mortgage co in time. You will have to pay the reservation fee again though and that could cancel out any savings you make on the mortgage in it's fixed rate.
    Debt: 16/04/2007:TOTAL DEBT [strike]£92727.75[/strike] £49395.47:eek: :eek: :eek: £43332.28 repaid 100.77% of £43000 target.
    MFiT T2: Debt [STRIKE]£52856.59[/STRIKE] £6316.14 £46540.45 repaid 101.17% of £46000 target.
    2013 Target: completely clear my [STRIKE]£6316.14[/STRIKE] £0 mortgage debt. £6316.14 100% repaid.
  • bob79
    bob79 Posts: 166 Forumite
    For 5 year fixed rated deals against a rate of 3.49% you would need a low LTV (loan to value), i.e. a big deposit. Do you have that? Since Halifax initially only offered you a 6.59% rate I presume not. So you can probably not benefit from these better rate deals anyway, since because of your LTV you do not qualify.

    If you change mortgage lenders, then they will insist on another valuation of the property which takes time and money.

    If Halifax has a better rate now than when you applied for the mortgage (against the same LTV!), then call them and ask for them to change the deal. That should be pretty straightforward.

    From your post I gather that you already exchanged contracts? Changing mortgage deals after exchange of contracts won't make you solicitor happy. Be sure to communicate with your solicitor!
  • chickmug
    chickmug Posts: 3,279 Forumite
    Leanne315 wrote: »
    We are first time buyers currently in the process of buying a house, we have a mortgage offer from the Halifax at the moment (fixed rate for 5yrs at a rate of 6.59). We are not far off completion, however we have noticed all these deals for fixed rates at 3.49% with other lenders. Are we able to change from the Halifax now so we can benefit from the new deals?
    Also if the Halifax have better deals can we ask to stay with them but change the fixed rate?

    Thanks

    I would be saying to my seller client that should be worried and be prepared for delays. When this has happened, depsite assurances from the buyer and/or their broker, it often puts the process back.

    If you have exchanged you have a date the contarct specifies and would you risk not being able to complete for this date?
    A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.
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