Mortgage offer for X months, can rate rise change starting rate?

ohmie

Hi!

If you already have a mortgage offer valid for six months (as you're in the process of buying on a given property), with a given interest rate stated for it to start on, would an interest rate rise in the base rate change it?

Or is it fixed for as long as the offer is valid?

Thanks!

YHM

The rate that is on the offer document is guaranteed, so any change in the base rate or that lenders particular rates, will not directly impact upon the rate you have been offered

Gorgeous_George

I'd have thought it would all depend on whether or not you have a fixed rate mortgage offer.

But I'm not a mortgage broker.

If in doubt, ask the lender.

GG

YHM

Apologies, I have made an assumption the offered interest rate is a fixed rate....Is that correct?

But if for arguments sake, you had been offered a 1.29% 2 Year Fixed Rate and the BOE Base went up early November. Then this would not impact upon you.

ohmie

It's a five year fixed rate but hasn't commenced yet as haven't bought property. Reassuring advice above if the rates go up next week, cheers.

Boredatwrork

ohmie wrote: »

It's a five year fixed rate but hasn't commenced yet as haven't bought property. Reassuring advice above if the rates go up next week, cheers.

In your scenario, it should only effect the rate of your SVR (the rate that comes after the fixed term ends, i.e 5 years), and that's when you go hunting for the new deal. Just call them and check if you are that worried.