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URGENT help needed!

Hi All

Sorry for the urgency of this request but my wife and I are facing an important deadline and we desperately need some advice.

We are buying our first house and due to exchange in a week's time. We applied to Santander for a 25 year mortgage fixed for the first 5 years, and it was agreed about a month ago.

We saw a few days ago that HSBC are offering a fixed 5 year mortgage deal for 2.99%, a full 1% below what we have agreed with Santander. So today I checked the Santander website and they have also introduced a new 5 year fixed mortgage for 2.99%.

For the amount we're borrowing, the 2.99% rate will save us nearly £10,000 in the first 5 years. So we were wondering, are we now fully locked in to the mortgage we agreed with Santander? I thought it was basically an agreement for them to lend us the money WHEN we complete the house purchase. They haven't given us anything yet and the mortgage fee isn't payable until completion.

Is there any way we could somehow reapply either to Santander or make a new application to HSBC for the 2.99% deal? I guess we're asking just how tied we are now to the Santander agreement.

Sorry if this is a bit of a newbie question but any advice would be appreciated.

Thank you very much

David

Comments

  • sheilds
    sheilds Posts: 156 Forumite
    Hi David,

    The same thing happened to us -Santander brought out a better rate before we exchanged contracts.
    Our broker was able to get us swapped over to the new product prior to completion but I do remember we had to pay a fee (something like £199) but it was well worth it considering the savings we realised from the new rate.

    Good Luck.
    S.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Maximum LTV is 60% on these products. So do you qualify?
  • hcb42
    hcb42 Posts: 5,962 Forumite
    you are not locked in, but to get a new mortgage offer right before you exchange in a week, is some ask.

    When you have an offer you are happy with - stop looking!
  • Yes, our mortgage is only about 40% of the whole price so we should qualify.

    Thanks for all your help. Hope we can change over :)
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Get on the phone NOW to Santander and if you have a broker ring them as well.
    Read the paperwork/website to find out what fees you have already paid or need to pay and have the money ready to get this sorted quickly.
    Well done on saving such a good deposit and taking the long term view with a 5 year fix GOOD LUCK
  • harvey115
    harvey115 Posts: 691 Forumite
    I believe the 2.99 5 Yrs fix is only available for customers who bank with Santander. The account should have been opened for at least 30 days to qualify for this offer.
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