Mortgage Question

boomyanka

Hello,

I am hoping someone here can offer me some advice.

I am a first time buyer and have at the moment got an mortgage promise thing from Nationwide (i.e. I pay £400 and they reserve the mortgage for me)

Anyway the house that we were buying initially fell through but through some renegotiating we have managed to come to an agreement with the current owners, but the price of the house and therefore the mortgage we need has changed.

The mortgage we have reserved at Nationwide was 5 yrs fixed at 5.99%, this has since changed to 5.45%,

So here is my question,
1. Can we reapply to nationwide and just ditch the original mortgage promise with nationwide which will allow us to pay at the lower interest rate.

Extra cost £400 to set up mortgage, Saving about £2500 on mortgage over course of 5 years

or,

2. Can we renegotiate the amount on the original promise to get the new required amount at the less favourable 5.99%.

Ideally we would like number 1 but are aware that this may not be possible.

I wonder if anyone knows the answer to this or can shed any light, anything would be appreciated.

Thanks

Boomyanka

herbiesjp

Yes you can reapply for the lower rate with Nationwide