Mortgage Offer

London68164

Hi guys,

I would appreciate some advice on a help to buy property. We are buying a new build which is due for completion in Aug/Sep of this year. Having already agreed on a mortgage illustration with our broker, we proceeded with the application process and had a mortgage offer sent last month. We are yet to exchange contracts and yet to sign the mortgage deed.

With the developments in recent weeks of the impact of the virus, the Bank of England cut its base interest rate from 0.75% to 0.25% and I was wondering about the implications this would have on mortgage interest rates and the effect on us.

Are we locked in with our mortgage offer at this point and if not are we within our rights to ask our mortgage broker to start looking at illustrations again as the interest rates could in theory be much better and benefit us in the long run? Will the mortgage lenders interest rates respond this quickly to the cut in base rate? 

Any help is much appreciated!

Whats_your_forte

This conversation should be with your own broker but most are happy to keep an eye on rates and most lenders will allow you to jump onto new rates during this period. You can exchange on one offer and complete on another but as said, you own broker should be able to advise on this as per your case.