Mortgage change before completion

wingman83

Hi


Am a FTB. Have exchanged the contract already and the completion is on 15/09. My mortgage provide is Nationwide.


Have just noticed that the interest rate of my product is reduced from 1.54% to 1.44%.


Would I be able to change my IR (same product) now? Will it delay my completion by any chance. Is it risky at this point?


If my bank agrees to reduce the IR, should I inform my solicitor as well?


Could you please advice.


Thanks

jrrowleyws

No chance. When you agree a product you are advised that you would need to fully reapply to change products. Its a tough luck scenario I'm afraid. Unless you wing it, fail to complete and owe compensation to the chain just to get a cheaper mortgage...

Lilla_D

jrrowleyws wrote: »

No chance. When you agree a product you are advised that you would need to fully reapply to change products. Its a tough luck scenario I'm afraid. Unless you wing it, fail to complete and owe compensation to the chain just to get a cheaper mortgage...

Sorry, but completely disagree and not sure where you got your information from. Most lenders (Nationwide included) allow a product change before completion. Yes, it takes time, but it does NOT require a full new application. All OP (or their mortgage broker) has to do is complete the amendment request form and apply for the new product.

OP - amending the product details does have the risk of timing, but based on experience, you should be fine. If you applied via a broker, then even better, as they can move things along for you. Yes, the solicitor will have to be informed, but they'll hear about it anyway when they receive the new offer.

purpleparrotuk

thebestdayever wrote: »

what is a FTB? (sorry, new here!)

First time buyer :-)

AnotherJoe

First.Time.Buyer.

Lilla, what do you think the odds are of the OP applying for a revision to the mortgage with Nationwide, having that processed, agreed and then the money paid to the solicitor by 15th ( 6 working days)

I'd have thought no chance ?

Fiesto88

AnotherJoe wrote: »

First.Time.Buyer.

Lilla, what do you think the odds are of the OP applying for a revision to the mortgage with Nationwide, having that processed, agreed and then the money paid to the solicitor by 15th ( 6 working days)

I'd have thought no chance ?

It depends on the lender's internal process and systems. Some can turn it around within that timescale no problem - the amount being transferred to the solicitor isn't changing so there'd be no need for another notice of completion period. Calling up and asking nicely if they'll speed things up usually helps.

Lilla_D

I agree with Fiesto - 6/7 working days are do-able, especially, if OP is going through a broker.

AnotherJoe

I guess it comes down to "don't ask don't get" so they should be on the phone this morning and see what happens.

My money's on a phrase involving a snowball and a very hot place but I genuinely wish the OP good luck.

wingman83

Thanks for all your inputs. Its really helpful to make a decision.


The difference is £16.72 pm and £401.28 for 2 years (2 yrs fixed term).
I've decided to keep quiet as the completion is just 5 days away and I don't want to mess it up in the last min for £400.


Just to add; the rate was 1.74% when I initially got the offer. The bank had then reduced it to 1.54% for the same product. I had reached them out and changed my offer to 1.54% (this was before contract exchange).

gatters

OP, I was in a similar situation with Nationwide 2 years ago, although before exchange. 2.14% reduced to 2.04%.

It took over a week to process, I was interviewed by phone again, product fee refunded and paid again, and delayed slightly as a staff member was on leave.

I think you've made the right decision.

wingman83

Thanks.


They took almost 2 weeks when I asked them to reduce the rate from 1.74 to 1.54.


Now I feel like I should have gone through an advisor who could have made everything nice and easy.