Remortgage - 5.49%!

Miss_Penny_Pincher_2

I’ve just been to see mortgage adviser at Nationwide who was very helpful and has given us a Product Conversion Offer to the 5.63% 5 year Switcher Exclusive fixed rate mortgage.

He said that this is reserved for us but the latest date can start is 1st February whereas our current mortgage fixed rate ends on 1st April so if take this offer will be paying 5.63% for 2 months instead of 4.39% we are currently on so I’m using this mainly as a backup in case rates go up.

The advisor said we can cancel this offer at any time just by giving notice in writing. What I’m a little confused about though is the legal details – the advisor has provided us with a Product Conversion Offer aka Decision in Principle I believe that we need to sign and return. I’m unsure whether this product is definitely held at the moment or whether I need to sign the offer to hold it for definite. Also does anybody know whether signing this offer definitely means that we are bound to it and cannot give notice to pull out?

Dan_Collins_2

Miss_Penny_Pincher wrote: »

I’ve just been to see mortgage adviser at Nationwide who was very helpful and has given us a Product Conversion Offer to the 5.63% 5 year Switcher Exclusive fixed rate mortgage.

He said that this is reserved for us but the latest date can start is 1st February whereas our current mortgage fixed rate ends on 1st April so if take this offer will be paying 5.63% for 2 months instead of 4.39% we are currently on so I’m using this mainly as a backup in case rates go up.

The advisor said we can cancel this offer at any time just by giving notice in writing. What I’m a little confused about though is the legal details – the advisor has provided us with a Product Conversion Offer aka Decision in Principle I believe that we need to sign and return. I’m unsure whether this product is definitely held at the moment or whether I need to sign the offer to hold it for definite. Also does anybody know whether signing this offer definitely means that we are bound to it and cannot give notice to pull out?

Not sure if you are with NW or not, but if you are not the AIP is enough to secure the dealfor 3 months. Be careful though as you should not see rates go up enough to pay a penalty.

Good luck

Miss_Penny_Pincher_2

Dan_Collins wrote: »

Not sure if you are with NW or not, but if you are not the AIP is enough to secure the dealfor 3 months. Be careful though as you should not see rates go up enough to pay a penalty.

Good luck

Hi Dan

Yes, I'm currently with NW - they said can convert to new rate any time - they are happy cos I would be paying a higher rate of interest earlier as currently I'm on 4.39%

So can I sit back on my laurels? Does signing the AIP mean that we are trapped in the deal with early repayment fees if we pull out or can we still give letter canceling it? I'm a bit unsure really :S