Changing Mortgage product just before completion

essex_er

Hi,

I am couple of weeks away from completion of my purchase of a house and just realised that the bank is now offering a slightly better mortgage product than I was offered in November. I was offered 4.44% which seems to have gone down to 4.24% for FT buyers.

I wrote to my mortgage advisor about the new rate and she seems bit reluctant on confirming that the new rate is indeed cheaper and suggested me not to change the product as I am close to completion.

When I insisted she reasoned that there is a risk that I may be declined mortgage if she runs credit check again for my application against new rate. She has asked me to confirm in writing that I wish to change the mortgage product and understand that I may be declined a mortgage.

To be honest I felt a bit worried after speaking to her.

Given that nothing has changed that could possibly affect my credit rating should I be worried about anything before I request for the new rate?

Any advice/insight will be gratefully received.

Many thanks.
EE

Wh05apk

Who is the lender?

It shouldn't need a new credit check/application.

essex_er

Its Halifax.

The mortgage advisor insists that I need to provide fresh set of documents - payslips, bank statement etc for changing the product.

She also cited examples that some people were refused mortgage by their system on changing product.

Sounds odd to me.

Wh05apk

Halifax are about the easiest of all lender to change deals, they do not charge, the broker simply goes back into their system, quotes again, and set as "preferred", that will automatically re-issue the offer.

Is this a Halifax branch advisor or a broker?

Leon_W

Go careful !

I have had issues with the Halifax system when making post offer changes. A couple were adamant about changing products a week before completion, and I did warn them that the system may ask for different paperwork than was originally requested, did they listen ? No. What then transpired can only be described as a total balls up.

Proceed with caution !

essex_er

A branch adviser.

I spoke to a different branch adviser for the same bank and she suggested there should be no problem in changing to the cheaper product.

So far I have received mixed responses so not really sure which route I shall go down to.

My branch adviser also told me today that once I change the product, I can't go back on the old one. Not sure why would I.

redapple1

We did this with Halifax last month! Not a problem at all. Saved us about £45 per month.

essex_er

Great thank you.

kriskross

Would the solicitor charge a fee for changing interest rate if the lender stays the same:
The solicitors price list includes something this: "change of mortgage lender (each new offer) £95+VAT"