reserving mortgages

topdogandco

Hi,
Does anyone know an easy way of finding out which mortgage lenders allow you to reserve a mortgage deal and for how long they will hold it? I have trawled through a few websites and got details from some and no information from others. There must some sort of database out there, surely?

Thanks

GMS

What is it you want to do?

holly_hobby

A tranche of funds is reserved on mortgage offer - mge offers are typically valid for 6 mths from issue.

Whether the mortgage product itself is also reserved (ie can not be withdrawn within the offer period, even if the lender withdraws this product from the market) will depend if a reservation fee is paid on selection, which is not the same as an administraton fee (which can usually be added), and is both non-refundable and actually "reserves" the tranche of funds under the selected product, which is typical on fixed rate products.

Otherwise, if not reserved, and the product is withdrawn before you complete (or your offer expires), you will need to choose an alternative product from their then range.

You obv have concerns over a prolonged completion period, as GMS says what are your issues, perhaps we can give an alternative view/solution for you ?

Hope this helps

Holly

topdogandco

thanks for the replies so far.
I have no real concerns. Our deal ends early next year and was just curious to know when it was best to start shopping around for a new fixed rate deal to carry on from that.
Everyone seems to say you can book deals for 6 months but so far I have found the Nationwide at 3 months, Britannia at 4 months and the Post Office at 6 months.
Many other lenders give no indication on their websites hence the question.
Am I right in thinking there is a possibility that rates may rise in general in the timescales I am talking about?
Thanks

Caladan

It's a gamble either way. Mortgage rates may go up and may come down in the next 6 months. I believe 6 months is pretty typical for the High Street banks (HSBC for sure and I'm pretty confident Barclays is the same).

If you pay a booking fee (reservation fee) that 'buys' you the rate and guarantees it wont change (until the offer expires in 6 months/3 months/whenever) but you wont get it back if you change your mind.

Some lenders offer fee free deals and I believe for most lenders these are also reserved even though you don't pay an up front fee.

Hope it helps!
Cal