Interest rate cut - what happens to existing offers?

biowlman

Hi - I currently have an offer from Clydesdale on a 5% deposit mortgage. We’re currently at the searches stage of the transaction. With the changes in interest rates, should we expect an adjustment to the offer? I have an email in to my broker already, happy to share when I hear back.

bell

Following. I'm in almost the same position. Had an offer but sale feel through, found a new property with lower value, back to underwriting for offer adjustment. 

Obviously new business mortgage rates won't drop by 0.5% (they may not even pass it on to the SVR) but be interesting to see.

I suspect full new application would be required for a different rate but we will see. 

D.L

Literally nothing will happen to existing offers.

Likely will have a shorter re-application process though. I don't know how close you are to completing - it could take a while for things to filter through (if at all as interest rates are already very low)