worth getting a mortgage promise now...

james3333

hi chaps,
anyone recon it is worth getting a mortgage promise now, my deal runs out in april, but i recon the interest rate will keep going up next year so by the time april comes, i think the deals will have changed and fixed rates will be higher... so if i sorted a promise now ( good for 6 months, correct?) i COULD get a better deal
anyone agree?

mrmajika

We had a mortgage promise from the Halifax, but rates still changed after the recent interest rate increase.

I believe, although i'm not 100% sure, that you need to have a 'mortgage offer' rather than a mortgage promise.

The promise can be done without seeing evidence of income and without property evaluations. The offer, I believe, needs to see the evidence and also needs a survey done.

Hope this helps.

herbiesjp

mrmajika is correct.

You need to get the full mortgage offer issued, in order to keep a rate open for you. So you would need to submit a full application.

A mortgage promise does not mean anything, unless it is then converted into a full application.

HTH

james3333

iam not moving house... so i wouldnt need a survey, would i?

MortgageMamma

If you are remortgaging with a different lender they willcome out and value the property, a lot of mortgage deals offer free valuations and free legals though - so do look out for them. Also please be aware that not all lenders will honour a mortgage offer for six months -somewill only do it for three months so you need to check this with your chosen lender.

james3333

i see.
i was going to stick with the halifax, my current lender, so i would expect its quiet simple to sort out.
so, just how far would i have to take the process to secure a %rate and would i still be able to back out of it if better deals are available nearer to re-mortgaging time?

dunstonh

You arent borrowing the money again unless you move lender. If you stick with HBOS then you just apply for one of their current deals a bit closer to the time. They will then send out the offer letter and upon completion and return of that, you then enter tie in period and penalty period again.

james3333

yes, but , the deals will change if the Boe put up interest rates... can i apply for a new deal now, to ensure getting the best deal?

lisyloo

the deals will change if the Boe put up interest rates...

It doesn't work like that.
The bank offer rates depending on what they themselves can borrow the money at.
Clearly if base rates are rising then mortgage rates will rise but they don't do it in tandem.

can i apply for a new deal now, to ensure getting the best deal?

With my lender (Britannia) the deal was that I commit and they commit at the same time.
So I have to pay the application fee and they committed to the rate.

I don't think you are likely to get them to commit without paying the application feee.

I don't know whether you can get a product switch on a delayed basis.

Either you will need to phone them or one of the brokers on here can answer that.
You can certainly delay a re-mortgage but not sure about a product switch.

MortgageMamma

Most lenders will only allow you to apply for a product switch one month prior to the switch being actioned. I don't know specifically about Halifax - you would hae to call them and ask or speak to your adviser.

james3333

yeh, i dont suppose you can really 'out whit' a bank, they will have all bases covered.
would have been nice to secure a % rate now and IF the deals all went up i could sit back and be chuffed i got mine agreed really early and if not i could have just choosen a chaeper deal
if this makes sense