Mortgage Lender Has Reduced Rates After Exchange

Mickelburgh78

Hi All,

We are moving home and have remortgaged as we move with our current lender and have a deal in place and have exchanged contracts, we complete on Thursday 22nd Sept. Our lender has just reduced the rates of the product we've got with them but having spoken to them they told us that we could potentially get the better rate but we'd have to go through the whole underwriting/checking process again and as we'd already exchanged there probably isn't time (plus we don't want the added risk of anything going wrong at this stage). My feeling is that as we've exchanged and they've already undertaken the underwriting checks then the lender should be able to just pass on the better rates without having to go through the whole process again. Does anyone have any experience with this or advice? Thanks.

James

csgohan4

different product so new application., lenders rules.

Mickelburgh78

Thanks although I think it's the same product but with new lower rates.....

csgohan4

Mickelburgh78 wrote: »

Thanks although I think it's the same product but with new lower rates.....

But the lender has told you how to apply, new application it seems.


Is it worth risking your house over?

PasturesNew

This is how it works.
This is how it's always worked.
This is how it works for everybody.

On the flip side - how'd you feel now if they'd put the rates UP?

You signed up for a price. You got that price. That price changed and you can't switch. It doesn't work like that.

You'd not trade in your wife just after the altar after dating/waiting to get married because you felt cheated that her sister now looked prettier. You didn't buy into that deal.

csgohan4

Well Op can change, but faces losing his house or forfeiting their deposit as failure to complete on time.


Stop comparing and get on with the house. If we all started to look at the prices of things we buy, we would never buy and keep waiting for the next best model or cheaper price

amnblog

Some lenders will allow you to swop to a more recent, more favourable product, as a simple administration exercise.

Others take a view such as this that a new application is required.

Carry on with want you have at this stage, do you really want the risk and stress of a last minute reapplication.

Mickelburgh78

Thanks for the responses, the completion and move is the most important thing and we wouldn't risk that by reapplying now. It was really whether the lenders response was right ie new application. Sounds like that's the case so we'll leave well alone.

amnblog

We stopped two set of borrowers to new rates earlier this month. Both already had an offer on higher rates.

One lender took a telephone instruction from us to offer on the new more favourable rate.

The other lender told us we needed to reapply, then we didn't need to reapply, then we did, then we couldn't, then we didn't have to. Eventually, after lot of unnecessary work from us, they issued a new offer on the new rate.

All part of the joy of the job.

amateur_house

It sounds like you've been unlucky that your lender requires a new application. I've been assured that if rates go down before I complete I would get the new lower rate, but if they go up I will still get the rate in my offer.