Do I ask for a new quote as interest rates have dropped?

Stars12

I am in the process of buying a house. We have a mortgage in principle with a building society and it’s a 5yr fixed 2.75% Which has been done via a mortgage broker, he did find us a really good deal at the time however due to Coronavirus the interest rates have dropped! So far we have only submitted payslips and back statements and signed the direct debit form. The offer is valid until 1st April and we won’t be competed before then for sure. I’m assuming formally the bank would just extend this but can we ask for our mortgage broker to look elsewhere due to the rates dropping so much?

Stars12

**Sorry I meant I assuming normally the bank would extend** 

Serdar048

Hi im also wondering about this we have just send full application with halifax 5 years fixed rate valuation waiting to be booked but what offer will i recive if i get accept it will the rate what they told me is it gona change ? 

csgohan4

usually BOE cuts affect tracker and variable mortgages. Have a look yourself on the best buy tables or ask your mortgage broker if any new products have changed, unlikely but not impossible

Mr_Incredible

Trackers and variables are forced to amend accordingly off the back of any base rate cut. But within a week of them dropping, fixed rates will normally drop too

[Deleted User]

Mr_Incredible said:

Trackers and variables are forced to amend accordingly off the back of any base rate cut. But within a week of them dropping, fixed rates will normally drop too

Trackers are bound to whatever contract terms were agreed to at the time.  They may have a collar on them that means they do not reduce beyond a certain point.
Variable rates are again dependent on the contract terms.  Some lenders will link it closely to the BoE rate and will usually pass the rate cuts on whereas other lenders will set it according to their own business needs and will not pass the cut on as its not contractual.

Fixed rates may go down or may go up (yes Mr_Incredible, some lenders have actually increased rates in the last week).    

OP- Just drop the broker an email asking if any better deals have cropped up.   If your broker is anything like any of the dozens of brokers i have spoken to in the last week they will have had countless emails already

Mr_Incredible

Fixed rates may go down or may go up (yes Mr_Incredible, some lenders have actually increased rates in the last week).    

Really ? Which ones?

[Deleted User]

For new customers: 
Nationwide increased some rates,  HSBC increased pretty much all rates across the board , Accord reduced some rates but increased others, Leeds reduced some but increased others.

I cant really be bothered going through my deleted emails but there are more lenders that have increased certain rates as they do not want to play the game of lending money at a loss. 

For existing customers, they will have been reduced (or not) in line with their contractual terms

Mr_Incredible

Deleted_User said:

For new customers: 
Nationwide increased some rates,  HSBC increased pretty much all rates across the board , Accord reduced some rates but increased others, Leeds reduced some but increased others.

I cant really be bothered going through my deleted emails but there are more lenders that have increased certain rates as they do not want to play the game of lending money at a loss. 

For existing customers, they will have been reduced (or not) in line with their contractual terms

Wow I’m shocked