What will happen, the mortgage we are applying for has had its interest rate increaed

jonpeat

We are with Northern Rock and are buying a new house, so we have an application going through, now today the intetest rate has gone up on the product. Will we still get the product at the rate we agreed....or as the application is still in progress will we be left paying the new rate?

macymoo

If you have already signed the paperwork you will get the original rate offered.

toonfish

macymoo wrote:

If you have already signed the paperwork you will get the original rate offered.

only if Northern Rock recieved it before the date of the change

jonpeat

Now you see I don't think its going to happen then....we are only in the application process....we have not had a firm letter of offer. The survey has just beem carried out.

dwight-van-man

As long as the application was submitted prior to the rate change, you will get the rate your were looking for. Doesn't matter when the case completes.

jonpeat

Oh...thats OK then....its been with them for over a week.
Thats made me much happier.

Daniel_B

I would be inclided to give them a call for clarification, and if they confirm you will get the original rate, take the persons name!

Lady_maverick1979

We had this happen with RBS with a previous mortgage.

We were told at the time that officially, they couldn't do anything as we hadn't yet paid the arrangement fee to secure the rate, but our very lovely mortgage person in the branch really pushed Head Office, explaining how good customers we were, and that we were seriously considering going elsewhere, and they agreed to give us the previous rate.

jonpeat

Well the arrangemnet fee has been paid so hopefully we should be OK.

danjberry

is it a fixed rate?

jonpeat

Yes it is. I have phone them up and we are still on the initial rate...so all is well

Thanks for all your help!