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Mortgage Application Advice
Barnezy
Posts: 7 Forumite
Hope you can help.
I am buying my first house with my wife. We have the mortgage offer in place, have exchanged contracts with the vendor and have a completion date of the 14th August. The vendor has no onward chain.
I noticed that the rate the mortgage provider is now offering, is 0.2% lower than what we were given on our initial application. The difference will save us £50pm or £600pa. As we have a month before completion I spoke to my broker to see if it is possible to get on the new rate. He advised it was possible but it would need to go through underwriting again, and the current offer would become void, as such, there is a remote possibility the mortgage could be turned down. I spoke to my solicitor to understand the consequences if this were to happen and it wasn’t very pleasant, loss of deposit, fines and other possible payments to the vendor.
All in all, our finances are in better shape then they were the first time the application was approved. The broker said he hasn’t ever had one rejected, but it was still a possibility.
Is the risk of requesting the lower rate, worth it? Anyone have experience of doing this?
I am buying my first house with my wife. We have the mortgage offer in place, have exchanged contracts with the vendor and have a completion date of the 14th August. The vendor has no onward chain.
I noticed that the rate the mortgage provider is now offering, is 0.2% lower than what we were given on our initial application. The difference will save us £50pm or £600pa. As we have a month before completion I spoke to my broker to see if it is possible to get on the new rate. He advised it was possible but it would need to go through underwriting again, and the current offer would become void, as such, there is a remote possibility the mortgage could be turned down. I spoke to my solicitor to understand the consequences if this were to happen and it wasn’t very pleasant, loss of deposit, fines and other possible payments to the vendor.
All in all, our finances are in better shape then they were the first time the application was approved. The broker said he hasn’t ever had one rejected, but it was still a possibility.
Is the risk of requesting the lower rate, worth it? Anyone have experience of doing this?
0
Comments
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How easy it is to swop depends on the Lender. Some will let you swop for free during the application process. Some will let you swap for a fixed fee. Some wont let you swop once the application has started and original product booked.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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