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Received Formal Mortgage Offer, but Interest Rate Has Since Gone Down. Re-apply?

Hi,

We got a decent deal on our mortgage offer as a FTB with a good deposit. We've had our formal offer, but not yet paid any booking fee as added to the loan.

Can we re-apply for the mortgage as the interest rates have gone down with the same morgage lender?

Is it possible, and are there any fees or penalties?

Thanks in advance

Comments

  • Depends on the lender as to their policy - ask them, we don't even know who they are.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • san09
    san09 Posts: 74 Forumite
    edited 12 October 2011 at 8:40AM
    Sorry Santander. The paperwork doesn't mention.
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    They will allow you to change deal, but they will cahrge you £199 for doing so, weigh up wether you will recoup this cost.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • lkmc01
    lkmc01 Posts: 967 Forumite
    I had the same issue with nationwide. First time buyer, borrowing £63750. Applied for 5 year fixed 75% LTV at 4.89%. It dropped to 4.14%. I reapplied and paid additional £99. It is saving me £1689 over the 5 years, and then more beyond so well worth it!!!
  • san09
    san09 Posts: 74 Forumite
    Well worth the booking fee then.
    I'll do my sums but I'm sure I'd be better off.
    Also we may not need to borrow as much as anticipated so should get a good deal.
    Thanks for your advice folks.:)
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