Mortgage rate

Sncjw

Hi all we are waiting for an appointment to finish off the mortgage application but forgot to ask the advisor would the interest rate be a lot different to what’s advertised at 2.44%. Just he was asking what our budget was to decide on the term. We wanted to do 5 year fixed rate and the term would be 20 years. But now I’m thinking the price could be a lot higher per month. 

Thank you 

Moneyminded

When you apply for a mortgage you are applying for a specific rate/ mortgage product. You broker will just be checking that your 20 year term is affordable on your current rate but also if interest rates increase in the future. If the mortgage company accepts your application (and the valuation shows the house is worth what you offered) you will get the 2.44% rate on a 5 year fix. What might change (to keep repayments affordable) is the overall term i.e. your broker might suggest 22 years instead. 

Sncjw

I thought they would change like loans and credit cards

Moneyminded

No, you are either accepted for a mortgage deal or not. You (and the house you are buying) either meet their lending criteria or not.