Mortgage offer - will they withdraw

nightsky224

Our mortgage finished its deal in September. In May as rates were increasing we decided to look for a new offer and have secured a 10 year fix at 2.29 (We are risk adverse so this suited us well) it was accepted and it’s sitting there waiting for us to action after the date for the exit fee passes because it’s quite chunky. 

With the current increase in base rates mortgage rates are increasing and I’m worrying about Nationwide withdrawing their offer. 

Does anyone know if this is something that they do? Googling doesn’t seem to help and only talks about them withdrawing offers because of affordability etc. 

K_S

nightsky224 said:

Our mortgage finished its deal in September. In May as rates were increasing we decided to look for a new offer and have secured a 10 year fix at 2.29 (We are risk adverse so this suited us well) it was accepted and it’s sitting there waiting for us to action after the date for the exit fee passes because it’s quite chunky. 

With the current increase in base rates mortgage rates are increasing and I’m worrying about Nationwide withdrawing their offer. 

Does anyone know if this is something that they do? Googling doesn’t seem to help and only talks about them withdrawing offers because of affordability etc. 

@nighsk224 You can rest assured that Nationwide won't withdraw their offer simply because interest rates have risen.

The rate you got at the time was based on their funding costs for the funds they've earmarked to loan you, so they'll still make money on it.

Rachelredwood16

From what I've read on here from Mortgage Advisors, once an offer has been provided/accepted then they will honour it until the date of expiry

nightsky224

Rachelredwood16 said:

From what I've read on here from Mortgage Advisors, once an offer has been provided/accepted then they will honour it until the date of expiry

K_S said:

nightsky224 said:

Our mortgage finished its deal in September. In May as rates were increasing we decided to look for a new offer and have secured a 10 year fix at 2.29 (We are risk adverse so this suited us well) it was accepted and it’s sitting there waiting for us to action after the date for the exit fee passes because it’s quite chunky. 

With the current increase in base rates mortgage rates are increasing and I’m worrying about Nationwide withdrawing their offer. 

Does anyone know if this is something that they do? Googling doesn’t seem to help and only talks about them withdrawing offers because of affordability etc. 

@nighsk224 You can rest assured that Nationwide won't withdraw their offer simply because interest rates have risen.

The rate you got at the time was based on their funding costs for the funds they've earmarked to loan you, so they'll still make money on it.

I really hope you are both right! When applying for the mortgage I remember saying that it was valid for 6m unless the bank withdrew the offer so that's what got me worrying! 

nightsky224

Well for anyone interested, it went through, offer honored and no issues, Phew!!

rincage

Today I completed on a 10yr fixed rate at ~2.25%. I applied back in May and asked them to wait until the end of early redemption penalties on my current mortgage. With a 6 month offer given, this left me with a window from start of Nov to end of Nov to complete before my offer expired. To say I've been on tenterhooks these last few months - as things went from bad to worse - is an understatement! But it all went through without any fuss.  If I had applied now, the best offer would have been at least £500 more per month.