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Can the lender change the interest rate on an offer?

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Desperatehousemove
Desperatehousemove Posts: 35 Forumite
Second Anniversary 10 Posts Name Dropper
in House buying, renting & selling
Just curious - We had our mortgage offer at the start of the month, and obviously the base rate has increased. Does this mean that the lender can now change the rate that they offered?
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Comments

  • TXC
    TXC Posts: 265 Forumite
    Third Anniversary 100 Posts Name Dropper
    If its a fixed mortgage I wouldnt have thought so because you were made the offer at a point in time where the interest rate was X. If they were to increase the rate you'd need to go through the full affordability assessment again and have a new offer created

  • user1977
    user1977 Posts: 17,715 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Only if the mortgage offer says the rate varies with the base rate. Does it?
  • Desperatehousemove
    Desperatehousemove Posts: 35 Forumite
    Second Anniversary 10 Posts Name Dropper
    No - its a fixed rate deal for 5 years, i've just had a text from them saying we will be getting a revised mortgage offer in the post. I'm worrying now incase they've increased the rate because we're really close to the point of exchange!
  • canaldumidi
    canaldumidi Posts: 3,511 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Would depend on the exact product and wording, but I doubt it.
    If it is a variable rate mortgage product, then perhaps yes. But most people apply for specific products.
    What does your mortgage product offer say?
  • propertyhunter
    propertyhunter Posts: 604 Forumite
    500 Posts Third Anniversary Name Dropper
    Unless the mortgage offer expires, the interest rate should be locked down. Would be interested to know what the revision would be. Perhaps speak to your mortgage advisor if you have one. I assume your financial circumstances have not changed since you received the initial offer? 
  • Desperatehousemove
    Desperatehousemove Posts: 35 Forumite
    Second Anniversary 10 Posts Name Dropper
    Ah! I think I may have sussed it - on the mortgage offer it says fixed rate @ 1.69% then after 5 years it will revert to the standard variable rate which is currently 3.99%

    I wonder if they have reissued it with the new variable rate?

    No changes to financial circumstances apart from our income has increased slightly but i doubt that will have an effect
  • propertyhunter
    propertyhunter Posts: 604 Forumite
    500 Posts Third Anniversary Name Dropper
    Not sure that they would send a new offer for an adjustment to the SVR, since the existing offer would state what the SVR was at the date the offer was given and state that it's subject to change? 

    Let us know when you get the letter through the post. Who is the lender? 
  • canaldumidi
    canaldumidi Posts: 3,511 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 30 March 2022 at 10:22AM
    Desperatehousemove said:
    Ah! I think I may have sussed it - on the mortgage offer it says fixed rate @ 1.69% then after 5 years it will revert to the standard variable rate which is currently 3.99%

    I wonder if they have reissued it with the new variable rate?
    Even if they haven't yet, they will have done in 5 years when your fixed rate expires! But at least you know where you are for the next 5 years....

  • Desperatehousemove
    Desperatehousemove Posts: 35 Forumite
    Second Anniversary 10 Posts Name Dropper
    Its Nationwide! I hope its just that the SVR has changed... I can't face going through the whole waiting for a mortgage offer process again...
  • Desperatehousemove
    Desperatehousemove Posts: 35 Forumite
    Second Anniversary 10 Posts Name Dropper
    I'm worried now! 
    It says 'because part of your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes'
    Is this referring to when the fix rate expires?
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