Fixed rate change mid application.

TheNoo

Hi all,

I am currently in the middle of a mortgage application, (I say middle but they are doing the final underwriting). I just noticed that on the lenders website that the rate we applied for no longer exists!?!:(

We applied for a 5 year fix, at what we considered to be a fairly competitive rate, however the lender has upped the rate by 0.7% since yesterday. This increase makes the product much less competitive and one we would not have applied for.

I will obviously contact the lender asap but in the short term (tonight) can anyone advise me whether the lower rate we applied for will still apply? or are we going to be stung by the new rate? If so we will have to bite the bullet and look elsewhere.

Cheers

hcb42

if the rate has been withdrawn before you have made an application, then it's usually too bad.

This happened with me recently, the downside was no longer was their a cashback of £500 for legal fees etc, on the nearest comparable product there was only £150 available, but the upside was the rate was reduced (albeit 0.1% so didn't really affect us that much)

TheNoo

Thanks for the quick reply,

The application was made before the rate was withdrawn. So i am not sure how this affects us. The rate with withdrawn yesterday yet we applied 4 weeks ago, given the length of time it has taken us to get this far i am a little worried about having to go through it all again if we are shafted with the new rate.

John1993_2

Call them and ask, no-one on here can give you a definitive answer as to what your bank will do.

HSBC honoured a lower rate for me recently after it was withdrawn, as the delay was their fault (adviser pushed back the meeting date for signing and forgot to book the fees as he should have done), and there was a process in place to have the system "unlocked".

If you've done everything on your side, and it's their delay causing the problem then there's no harm in politely asking that they honour the rate for which you applied.