Mortgage booking fee - Rate lowered

Scoobymoo

Hi

Can anyone offer advice on where we might stand with regard to mortgage rate booking fees?

We are currently remortgaging with First Direct - we are existing customers, just increasing our mortgage for home improvements. We were offered a rate a few weeks ago of 2.73 for a 5 year fix and we paid a booking fee to reserve this rate. The mortgage has not yet been finalised however although it is just a matter of the paperwork being processed - it's all approved.

The rate has now dropped to 2.39 which is quite a difference on our repayments!! Should we be allowed to take up this new rate or by paying the booking fee is it too late? We will obviously contact First Direct but it would be good to know where we might stand before we make the phone call.

Thank you!!

amnblog

First Direct are the only accurate source of their rules.

A booking fee is normally what is says - you pay to reserve the rate. To take a new rate you lose the original fee and pay another fee to book the new rate.

Scoobymoo

Yes, we will be contacting First Direct. There is no real small print but it does say it's non refundable but is this the same as non-transferable as we still wish to take out a mortgage with them and nothing has actually been done yet?!

Thrugelmir

Scoobymoo wrote: »

There is no real small print but it does say it's non refundable but is this the same as non-transferable as we still wish to take out a mortgage with them and nothing has actually been done yet?!

They've reserved the funds for you at that rate. Lenders offer mortgage funds in tranches. So this could be part of say a £50 million allocation. Once reserved in full the offer will be closed.