Better mortgage rate available after mortgage offer has been received

DQ_89

Hi there,

I'm a FTB and I have received a mortgage offer for a 5 year fixed rate mortgage from Natwest after my application was successful a couple of weeks ago.

My steps to completion are going through the motions and my solicitors have sent over a bunch of stuff from the lender.

I've been informed by my broker that I can change mortgage up to the point of exchange.

I've had another look at the mortgages that are currently available on the market and I've found one with TSB which is £5/month lower (0.05% in terms of the rate)

I'm wondering for advice on how/if multiple mortgage applications with different lenders will affect my credit score?

My credit score is in the Excellent category, according to Experian which I've just checked and there doesn't seem to be a negative hit on it for the mortgage application.

I'm looking for some general advice on what I should do, as obviously I want to get the best rate possible and between now and exchange rates might go down even further


Many thanks, Dan

getmore4less

Check properly not just the payment/rate also any cashbacks/fees (the comparison sites get the answers wrong).

You also have to consider other factors like the lenders history with product transfer rates.

Changing lender or product introduces delays which could delay the whole process.


What LTV, as the data sheets it looks like Natwest has  lower rates for the same net fees than TSB

(Nat west updated 30June)

lonibra

You can change your lender any time up to completion.

Are you going to keep switching banks until then each time there's a small saving? Not sure that's a good idea.

 Just wait till you're a few weeks from exchange and rescan the market then.

DQ_89

Hi - so the LTV bracket I'm in is 60%

The product I've been accepted for is FO26417 5 Year Fixed 60% £995 Purchase

My broker applied for a similar Natwest product initially a few weeks ago which took about 5 days for the offer to come through.

Then I noticed that Nawest lowered the rates slightly and the broker informed me that as the product is with the same lender and just a rate change that this would not incur another credit check.

They submitted another application and the revised Offer of Loan came through the next working day

I'll take your advice lonibra and check the market again closer to exchange which is probably a couple of months away and if natwest bring out a better product just go with them to save the extra credit checks from other lenders

getmore4less

Don't forget to look at products switch rates for after the 5 years, some lender are quite favourable with those and a few £ extra can pay off later with better rates for the second round.

kingstreet

I requested an amendment on a NatWest case yesterday. Already offered on 1.53% fixed for 5 years and requested amendment to 1.4% fixed for 5 years and revised offer just issued.