Which co-op mortgage to choose - fixed or capped tracker

jem16

new_home_owner wrote: »

i think unless you had the agreement before they changed the rate, you will have to go on one of their current deals.

That's the problem. My son (the OP) was told by the mortgage adviser whom he saw in the Co-op branch that by applying one week before the 5yr fixed rate was pulled that he would secure that rate. He specifically asked that question.

Now some are saying otherwise. Who is speaking the truth???

ultramagnetic_commuter

new_home_owner wrote: »

... i think unless you had the agreement before they changed the rate, you will have to go on one of their current deals.

I'll be astonished if that's the case and until we know I don't think we should assume it.

jem16

My son phoned the Co-op central bank number this morning and was again advised that the rate he applied for is guaranteed.

Debbie1980

I rang this morning asking some other questions and also checked again re this rate and was told it was guaranteed

lindos90

After the advice given by the call centre, I was really worried, and quite annoyed that they may delay, and we could be at their mercy, potentially having to get a more expensive product, or start right from the again at another bank.

My husband called the mortgage guy we saw in the branch, he also said that we had applied for that product, and therefore our application, as it was approved in principle before the cut off day, should be honoured, which is how it should be!

Im reassured, but will not feel totally convinced until I get the mortgage offer document and see it in black and white, but thats just me!

Appologies for worrying people, but had the call centers advice been correct, I thought people would need to know:o.

Good luck to all that applied, keep us all posted, keeping my fingers crosse for us all!!:beer:

graham17_2

Hey,

Just to update any worried/frustrated people...

I applied for the 4.99% 5 year fixed rate mortgage with the co-op on August 21st. Overall, it all went fairly smoothly, sometimes calling them up to encourage them to sort out stuff like the valuation, etc. I had the valuation done when I had the bid accepted, as is the norm in scotland. They were happy to accept this, it just took a bit of encouraging to get it sorted with them requesting it from my surveyors, etc.

But today, I just received the formal offer. It was dated the 21st of september, so exactly a month after I applied, it has all been processed and the formal offer been sent through to me. When I applied, I was told 4-6 weeks, and they have easily kept to this time-scale.

I can't say I've had any particular problems, other than trying to get hold of the right person at the right times. But everyone I've spoken to has been very helpful and have managed to get things done quickly.

Just wanted to update the thread as I've noticed people worrying about how slow it'll be, but from my experience now, it has been quick. Oh and as they promised about the rate, I did indeed get the rate of 4.99% as initially offered (was told this would only change if I wanted to make changes to the mortgage offer, such as the house I was buying).

Oh, and one quick question in case anyone knows. On the papers, it says I need to complete a document (deed of consent) before they can release the mortgage to me stating if anyone 17 or over will be living with me. My fiancee (22) will be living with me - I assume this won't be a problem at all when declaring it? I'm assuming they're just checking I'm not going to be renting a room to someone or anything like that, but just thought I'd check if anyone knew for definite.

Hope all goes well for everyone else.

Cheers,

Graham.

tek-monkey

I need to fill out the same thing, as my brother will be living me. Think its just a formality?

lindos90

Thanks for updating us on progress, its reminded me the chase them up again.

So am I reading it right graham, the mortgage offer is only for the current house? If that falls through you have to reapply on a new rate deal?

I always thought that the mortgage offer could be used within an agreed time frame for another house (subject to another survey obviously) if the first one falls through for some reason.

Does anyone know how long the mortgage offer is valid for, cant find any details on that.

Our solicitor is working slower than the co-op, and now im wondering if we will get a mortgage offer, but not complete/exchange before the offer expires, therefore loosing the great capped tracker we are hopwfully going to be offered!

sallycanwait

We went with the capped tracker as well and so far have had no issues (touch wood). Didn't hear anything for a while then got a call out of the blue to ask for payment for the valuation. I asked if that meant the mortgage was approved in principle and she said yes. Would have been nice to have been told really but there you go!

The valuation happened on the Sunday and I called the next morning to find out what the process was from that point on. They didn't have the results of the survey but told me to try the next day. Same again the next day. Then on Weds the guy I spoke to said he'd call when there was something to tell us. He called that evening just to let me know there was still no news and then the following evening to say it had been passed to the underwriters for this Monday. Assume that means all is fine (the vendor told me the surveyor could find absolutely nothing wrong at all!). Have been impressed with the people I've spoken to so far so no complaints here.

However, we're in the same boat as you Lindos - all fine with Co-Op, just the solicitors dragging their feet - over a month in and nothing's happened at all.

Interested to hear about the expiry date once the formal offer is in - know the AIP was valid for 28 days but didn't know this applied to the final offer as well?

Anyone know?

graham17_2

Hey Tek-monkey,

Yea I'm assuming that's just a formality. I'm guessing it's for them to declare they're not renting the room or something, although I don't really know. Can anyone confirm?

Lindos90, I'm not 100% on that. Up here in Scotland, we generally get an offer on a house accepted, then formally apply for the mortgage, so you're never likely to change the house. Not sure how it affects people in england where it's more possible that it could change. Possibly worth calling to check? They just mentioned when I asked a few weeks back if I was guaranteed it. They basically said yes, except if I wanted to make changes to the mortgage (sounded like major changes - but I'd call to confirm if I were you).

For those wanting to know about time, the formal offer says it is valid for 90 days from the date of production. For me, the date of production was the 21st September, and I got it in the post today. So pretty much still got the full 90 days left.

Thanks,

Graham.