mortgage rate drops again after i get mortgage offer

puregeordie

Hi, As title If you were to apply for a mortgage, everything is accepted then you get the offer through, After a little while you find that their mortgage rates have dropped again and find you could could of got a better deal if you re-apply. Would this be possible and at what cost?

Would your just have to stump up the admin fee again then re-apply or would they kindly change the rate just with a phone call, that would be nice. This is just a scenario and not actually what has happened but I guess could possibly happen.

Say the mortgage I have applied for against a new build house in the UK but its not built for 4 months, however the mortgage offer lasts for 6 months so anything could happen to rates in the meantime, also you would like to borrow exactly the same amount against the same house purchase.

No dought this has occured many times and its the same if rates go up, and I'd be fixed into the rate I have got anyways.

any thoughts, cheers.

Wh05apk

Who is the lender, they are all different, Halifax for example, are easy, I simply go onto their system, do a new quote and tell it to re-issue the offer, no fees, no hassle, other lenders can be a pain!

puregeordie

Hi, It is the halifax in question, so I technically could ring them if the rate slightly drops in the next 3-4 months with no hassle? thanks.

kingstreet

Yes.

With Nationwide, you pay the £99 booking fee again.

As Wh05 said, Halifax is simple for brokers. We go in, change the product, requote and the new offer is available to download immediately.

Goldiegirl

puregeordie wrote: »

Hi, It is the halifax in question, so I technically could ring them if the rate slightly drops in the next 3-4 months with no hassle? thanks.

Yes, you'd need to speak to your mortgage arranger at the Halifax, or your broker if you used a broker, and ask for a reoffer on the new interest rate product.

If you'd paid a product arrangement fee up front for the product you originally had you probably wouldn't get it back, and any product arrangement fee would be payable as normal on the new product.

However, there's always a slight risk when asking for a reoffer. If any adverse information had been registered on your credit file since the original offer, this would be picked up, and it could result in the offer being withdrawn!

puregeordie

Hi, What if I have just done this mortgage myself and have not used a broker, would this still be ok just to ring up and re-quote to get a new offer against the new rate?

thanks,

Wh05apk

Possibly, any reason why you did it yourself?

Also why Halifax, as generally they have been uncompetitive for quite a long while?

puregeordie

Hi, Used halifax because after my calculations it was the best offer due to my own circumstances taking account into fees etc.

So if rate changes just ring up and change accordingly but I possibly may have to stump up another admin fee, Just to stump up the admin fee may make it not even worthwhile over the short period as a small rate drop would probably only save me a few quid per month anyways!

Thanks.

kingstreet

Admin fee?

Halifax charges none.

You have a product fee which you can add to the loan and if you've done that, there will be nothing else to pay on a change of product.

If you've paid it upfront, I'm not sure if you have to pay it again. As I said on another thread the other day, we always add the fee to the loan and recommend the borrower pays it off after completion.

That way, lost money is minimised if anything goes wrong before completion.

It wasn't a stamp duty incentive product was it?

puregeordie

kingstreet wrote: »

Admin fee?

Halifax charges none.

You have a product fee which you can add to the loan and if you've done that, there will be nothing else to pay on a change of product.

If you've paid it upfront, I'm not sure if you have to pay it again. As I said on another thread the other day, we always add the fee to the loan and recommend the borrower pays it off after completion.

That way, lost money is minimised if anything goes wrong before completion.

It wasn't a stamp duty incentive product was it?

Sorry I meant to say mortgage account fee, Not admin fee, I wouldn't have to stump up this again as it was a few hundred quid? Just me getting confused with different fees!! thanks.

kingstreet

No. The mortgage account fee is added to the loan on completion and is paid back interest-free over the term of the mortgage.

The usual three Halifax fees are;-

valuation/valuation admin fee (only paid once, unless change of property)
mortgage account fee (added to loan)
product fee (option to add to loan if within borrowing power).