Do banks have to honour their MAPs?

melanierose

Hello,

In April I completed a morgtage agreement in principle with Halifax. They offered 5.99% for a 90% LTV, which is a rate that no longer appears on their website.

The MAP states:

This illustration is valid for the day of issue. In order to qualify for the products you have selected, the mortgage must complete before the 30/11/2012. This is not a legally binding mortgage offer and it does not oblige Halifax to provide you with the
mortgage described in this illustration.

Can I hold them to this rate, or will I have to accept their current rate?

Thanks!

betmunch

So it clearly states its valid on the day of issue AND that its not legally binding?

............

dunstonh

IS MAP the current name for these? I have never heard that term before.

The saying goes "it does exactly what it says on the tin".

melanierose

I don't understand the point of getting an Agreement in Principle if neither side is bound to it.

betmunch

melanierose wrote: »

I don't understand the point of getting an Agreement in Principle if neither side is bound to it.

Its an indication that they are likely to lend to you.

With the Halifax it doesnt mean the product range on the day of the AIP is set.

Products change all the time so what you have is:
1. a good chance of getting a mortgage with Halifax.
2. an example of the products that were available that day (which, it seems, have now changed)

sockpuppet

No. A mortgage product is not 'reserved' until you submit a full application.
You could get an AIP one day, go to put in a full application the next day and that product could be gone. Then you would have to select a new product from whatever their current range was at the time.

An AIP as someone else stated is just an indication they may lend to you and to give you a guideline of what amounts may be available.

melanierose

Thanks everyone! I guess I'm stuck with the 6.5% mortgage now...

betmunch

melanierose wrote: »

Thanks everyone! I guess I'm stuck with the 6.5% mortgage now...

Harsh! Your not stuck with it until you exchange.

If Halifax product reduce in that time you may be able to switch, there may be a cost to this.

Ultimately if its not good enough, dont buy the house