New Build Mortage question

origstranger

Hi,
I have just exchanged contracts on a new build property which is scheduled to be built by July 2007. We have a formal mortgage offer which is valid for 6 months however I have noticed the building society has slashed the rate by 0.4% on the same mortgage.

My question is it possible for me to change the provider before completion? Or can i approach the building society and try and get on the new rate? I feel they may say you have to pay another application fee and survey charge however this will still mean we save over £3000 in the long run.

Is this possible? Or are you tied to the lender once you have received a formal mortgage offer?

Thanks

thebluenose

You can definately ask to go to the new rate.

If you have gone through a broker then I would ask your broker to do it for you.

Not all lenders will be allow you to go on the new rate without a bit of fuss as it is cheaper, but most of them will allow you to change to a different rate but will charge you an additional arrangement fee if this is applicable.

If you do not get any joy from them you can swap to any lender before completion but beware that you would probably have to pay an additional survey and any new arrangement fees.

I have done this numerous times ( I'm an ex mortgage broker) when dealing with new build property as this is the area that I used to work in.

Hope that this helps.

Haleyscomet

i would def try asking plus depending on whether you complete on time your mortgage offer may expire anyway (talking from experience, small problems take a long time to sort out)

origstranger

Thanks for the advice