switching to a different product?

Daniel_gecko

Hi all.

I have a mortgage offer from nationwide at 4.14% + £400 fee.
Tomorrow nationwide will be offering 3.94% + £400 fee.
(Both are 5yr fix)


My broker has told me that if I ask to pay the £99 application fee to switch products, nationwide can put me through the underwriting process again and potentially for no real reason pull my mortgage offer away.. he seemed to heavily discourage the idea.

I am 2-3 weeks from completion.

Any advice or comments?

Thanks

jimjames

I'm in the same situation as are a lot of people I would guess based on the inability to get through to their call centre today.

Fortunately ours does't have application fee but I was led to believe it was a fairly simple switch.

Daniel_gecko

are there any brokers around with an insight here?

Thrugelmir

Daniel_gecko wrote: »

are there any brokers around with an insight here?

Not a broker.

Your broker has spelt out the risk. Is .2% worth losing the mortgage offer for ?

Daniel_gecko

Nationwide are telling me there is no risk..

kingstreet

I'd be surprised to hear a case would have to be re-underwritten for a change of product. You seem to have got your answer from the "horse's mouth" so you should be fine.

Daniel_gecko

I think i'm too scared to switch..

jimjames

Daniel_gecko wrote: »

Nationwide are telling me there is no risk..

I've spoken to them today. The paperwork is in the post but the implication from the conversation was that it was a brand new application.

As such I probably will stick with the original deal. This would save me approx £3 per month for 2 years and while I hate giving money away without good reason I equally do not want to delay the purchase by starting from scratch again.