Lender allows existing borrowers to approach for new product 120 days before expiry..

LizEstelle

... of the old one.

My current lender (Accord) allows applications from existing borrowers 4 months before their current product tie-in expires.

Can anyone tell me why I would do this? Is there anything to be gained, looking at it from my viewpoint?

For the sake of argument, if I believe rates might rise around the end of my current product tie-in and so take advantage of the opportunity to 'apply early', would Accord honour any lower offer made to me during the 'first 100 days'...?

Any advice very gratefully received.

gratefulforhelp_2

Most mortgage companies allow you to arrange a deal up to this far in advance of the expiry of your old one. most of them will stick to it, and they may charge you a booking fee. I guess its a gamble as to whether you commit to something earlier or wait. Good luck with it.

LizEstelle

I'd appreciate any comments from people in the know.

Charlton_King

Coincidentally I'm also with Accord but I think this kind of arrangement is common with many lenders.

I also would like to know whether lenders honour offers made and signed up to.

It seems to me particularly important that they ought to do so in the case of existing borrowers who, if left high and dry at the last minute, will have to start mortgage hunting from a 'scratch' situation unlike the generality of new business customers who presumably will at least be up and running with this.

Any broker types out there?

Alan_Cross

Hey yes, this is an important question.

Curious there has been no reaction from broker types.

They probably don't want to encourage the practice of people continuing with their current lenders. I wonder why that could be...

Mrs_Bumble

Of course it could go either way couldn't it, you could get an offer of a product now and be quite happy with the interest rate but in 4 months time they might have a better offer/rate and so then you would perhaps kick yourself, or rates could increase and then you would be smiling.

If you agree an offer of a product now with Accord and they issue you that in writing then why wouldn't they honour it?

I suspect that Accord are trying to keep the clients that they think are worth keeping.

So if you can secure yourself a good deal now with Accord and you are happy with it, and it suits your requirements now and for the period of time of the product then all well and good. As a broker type I don't have an issue with that at all.