Can you Reserve a deal before remortgaging??

CrispyLettuce

At the moment we are comming to the end of our Fixed Rate Mortgage with HSBC. We are looking to Remortgage onto a better rate - most probably onto a HSBC Tracker.

Is it possible to get the mortgage in place now and then sit on it for a month or two before completing it?

Ok, i appreciate that with a tracker the rates are not guarenteed so could go up - but it would be good to get the mortgage agreed now whilst there are no set up fees etc.

Many Thanks.

holly_hobby

When you receive your offer you will be given a time frame within which you need to complete to retain the product reserved.

If there is no reservation fee to reserve your tranch of funds, then you may well lose the deal if by the time you complete the tranch of funds available on this rate has already expired.

A reservation fee normally will secure the tranch of funds on the particular product rate within the timeframe specified - so as long as you complete within the timeframe you will get the chosen rate.

If you excced the time frame given in the offer for completion you will lose any reservation fee already paid, and will have to choose a product from whats available at the time, you may also have to be re-credit checked depending upon the length of delay.

If you just want a AIP (i.e. status checks peformed) so that you know you have the finance available when you wish to draw it down (again within the given time frame within the AIP offer), and then want to choose a product near the time of completion, that shouldn't be a problem. (subject to valuation & status at time of drawdown).

Hope this helps

Holly

kingstreet

Unlikely there'll be a facility to do this with your existing lender. More than likely it'll be a case of phone today and the new rate will start on 1 July.

I can't see anything happening to cause HSBC to pull the tracker any time soon. How long left on the fix?

CrispyLettuce

Fixed rate ends on the 31 October.

Whilst the SVR is still better than my fixed (assuming it stays where it is!) id still like to hop on a Tracker.

Which brings me to another point - does anyone know of any historical statistics which shows how a lenders SVR compares to BOEBR over time?