Base rate increase - already got mortgage offer

LMS94

Hey,

Apologies if this has been asked before.

So, as you'll have probably heard, the bank of England have increased their base rate from 0.50% to 0.75%

I have already received my mortgage offer from Nationwide - is my interest rate fixed or will it increase in line with the BOE increased rate?

We're buying a new build which is due to complete in Nov-Dec and our offer expires at the end of December.

Thanks

MortgageMamma

Hi it should say on your mortgage offer what kind of interest rate/mortgage you have. Did you see a broker to do the mortgage? they should have explained this to you. Have a careful read through your offer and if you are not sure you understand call nationwide and get them to explain

lisyloo

I have already received my mortgage offer from Nationwide - is my interest rate fixed or will it increase in line with the BOE increased rate?

That depends on what mortgage you've been offered. Either could be true.

Do you know the name of the mortgage?

LMS94

Sorry, it's the Nationwide 2year fixed at 2.04% (no product fee)

middleclassbutpoor

if its fixed then it will remain at the rate offered.

lisyloo

Tempted to write fixed means fixed (brexit means brexit).

It will stay the same and the offer is still valid.
Your only risks is if the new build is not ready on time and the offer expires.

I bought a new build which was not completed on time.
On the day of completion there were numerous vans parked outside and numerous workmen working on it as it was the last day of the financial year and the builder did not want to delay.
The place was not habitable (issue with the heating meaning it was very hot).

I would urge you to keep tabs on progress and actually visit yourself, if possible on the day before the money goes over.

If I had known the state of our property I would have negotiated a discount if they wanted the money on time as it was not ready.

kingstreet

Here's one I prepared earlier;-

"Hi,

Thank you for your email.

You have a firm offer of a fixed rate product open until 28 October 2018. This will not change before that date. If completion doesn't take place by then, we may have to select a new product from the current range at that time to obtain an extended offer.

New mortgage products are not directly affected by base rate movements as the swaps used to fund them are affected by market sentiment months ahead. We have seen no product withdrawals or launches in the last twenty-four because of this. The rate increase had already been discounted well ahead of its implementation.

HTH"