Mortgage product interest reduced whilst conveyancing.

alicewilliams

Hi everyone,

Pur mortgage product interest rate has reduced slightly
We're in the process of purchasing, so if I told our bank and Conveyancer:-

1. Will we need a new offer sending out from the bank?
2. Would this slowdown or complicate matters?

marksoton

It hasn't reduced at all. It's a new product and would require a new application with the lender.

alicewilliams

So if I asked the bank advisor to change to the new product, would we have to go through the whole application process again or would we simply ask them to change it over?

marksoton

Depends on their procedures but i'd imagine so yes.

kingstreet

In most cases you can change products during the application process. There may be a fee involved, depending on the lender concerned.

The only lender I can recall which won't allow you to change even if you reapply is Virgin Money.

For most lenders it's s simple admin job, but yes, a new offer has to be issued.

alicewilliams

Thank you kingstreet. My lender is halifax.

So if a new offer had to be issued, would this mean:-

1. Another credit check?
2. It would slowdown the process?

Hoploz

It needn't really slow things down. You would apply and it would be going on in the background while the rest of the process is going on. As long as you have a mortgage offer you can proceed, but if you get the lower one approved in time you can use that instead.

kingstreet

alicewilliams wrote: »

Thank you kingstreet. My lender is halifax.

So if a new offer had to be issued, would this mean:-

1. Another credit check?
2. It would slowdown the process?

It is a simple process which takes five minutes.

The Halifax system re-scores on up to date data every time something happens, so yes you will be re-checked, but that will also happen when your solicitor submits the certificate of title, so little difference there.

It will take two or three days for the revised offer to get to you and your solicitor, so if you are hoping to complete on Tuesday, leave well alone.

If you have a few weeks, you'll be fine.

alicewilliams

Thanks for your advice and help. We've decided to not bother as the difference in mortgage payments is very small, which we feel is not worth the aggravation. 5yr fix 2.24% vs 2.19%...If we went for the lower interest, it will reduce our monthly by a tiny £2 per month (£120 over 5yrs).

I think we'll be better off leaving it and once complete, we can make an overpayment instead. What do you think?

Brightspark87

From the rate mentioned about I would suggest at this late stage leaving it where it is. Did you go direct to Halifax or through a broker?

It may be that Halifax charge another fee for application for the new rate and this could mean that the saving is eaten up in costs.