Received mortgage offer - better rate available now

littlesparkles

I have had a mortgage offer for several months now. I'm buying a new build hence the wait between offer and completion. The same lender now has a better rate available. I know that I would have to pay the application fee again but would I have to submit a brand new application or would the lender just re-process my previous one? Would asking to apply for this rate affect the current mortgage offer at all? Same lender.

Simon_gloster

You are well within your rights to ask for a new illustration on the new deal as long as you are prepared to wait for the time to reissue a new offer (a few working days). If you have paid for the fee on the current deal then thats lost. If it was added, no issue, do it again and get on the lower rate.

If times on your side you'll be ok.

littlesparkles

Thanks for the reply. I paid a small application fee but the savings in just one year are more than this and it's a fixed rate for several years. Completion is approximately 2 months away so I think time would be on my side. If I ask them to look at the offer, will the old one be withdrawn? Or will I effectively have both offers if the second one goes through? I am worried about losing the one I already have!

Simon_gloster

You will lose the old one. Whichever is more recent is the one that the solicitors will use, and previous will be shredded.

littlesparkles

Okay thanks! So I can ask them to reprocess at the new rate but this won't mean I lose the first offer until if/when the new one is issued.