When does Mortgage Rate get locked in?

bmouthboyo

I am currently applying for a 5 year fixed mortgage which was agreed in principle and should touch would have no issues processing.

I am a little worried with rate hikes likely around the corner when in the process the offered rate is 'locked in' and won't be subject to change.

Ideally this would be the rate offered when the application starts but I am sure the banks don't really adhere to 'ideal' methods. Any advice?

Thanks :beer:

glosoli

It may vary from lender to lender but generally rates are subject to change until an offer document has been produced and issued.

Thrugelmir

If the lender has received the application and started processing same. Then one world expect the product to be honoured.

Lenders allocate tranches of money to each product. Once utilised the product will be withdrawn. Likewise products may be withdrawn if external events such as a BOE rate change occur.