Securing mortgage rate before house purchase

aJayMitchell

We are currently in the process of searching for a new house (our current property is under offer and due to complete at the end of August). We have obtained a couple of mortgages in principle to provide comfort to any sellers that we are able to obtain the required lending for the purchase - however these are both just pure indications of how much lenders may let us borrow, and don't mean much more - eg. they don't state anything to do with rates, etc.

My question is - with interest rates forecast to increase yet again next month, should we apply for a mortgage now - before we've actually had an offer accepted - in order to lock in and secure a fixed deal at the current rates? My understanding is that the mortgage offer would be valid for 3-6 months and we'd be liable to pay the arrangement fee if we didn't find a property in that time. Is that correct? Also, are there any lenders who will let you lock in any of their current deals without any fees?

Thanks in advance! 

kingstreet

You can't apply for a mortgage before you find and agree the price for property.

If you do an agreement in principle with Nationwide, once done you can reserve a product for upto three months while you find somewhere.

aJayMitchell

kingstreet said:

You can't apply for a mortgage before you find and agree the price for property.

If you do an agreement in principle with Nationwide, once done you can reserve a product for upto three months while you find somewhere.

Thanks - just taken a look and it appears this is only available if you're going through an intermediary and isn't available from Nationwide direct.