New Mortgage application after already receving offer

cbkeef · 30 July 2016 at 5:45PM

Hi,

I'm in the process of buying a house, all going well so far, and have a mortgage offer in place (received yesterday after the valuation last week) with YBS for their 5 year fix, 2.69% at 75% LTV. I'm still waiting for the homebuyers report to come back, still have to kick off searches with my solicitor, and so far have not yet set a completion date with the sellers.

Since I kicked off the application process YBS have dropped the rate for the above mortgage to 2.59%, so I'll be calling them on Monday to see if they will honour the lower rate, though I've a feeling they maybe won't.

But I've also just done a search using this sites mortgage comparison page and discovered First Direct have launched a 5 year fix for 75% LTV at 2.18% fee free. This would knock around £36 a month off the monthly payments on the YBS mortgage which is a couple of thousand less over the 5 years! So I'd like to apply if possible. I bank with First Direct and have been approved for a mortgage with them last year on a sale that fell through.

My question is, is this allowed if I already have an offer in place? And does anyone know if having the YBS offer would count against me with First Direct? Also is this sensible or even possible to do at this stage of the process?

Many thanks in advance.