7 days to commit to take mortgage Question

GoonerByron

Hi all,

I’ve just had a successful mortgage offer through from a lender, it is a variable rate and I done this 6 months in advance of my current fixed period lending due to rising rates.

I was under the impression that if a mortgage offer lasts 6 months, that’s how long I could be free to change my mind if anything massively changed (rates went up massively) but the offer states ‘You have 7 days after we have confirmed our binding mortgage offer to you to reflect before committing yourself to taking out this loan’.

Does this mean I have to respond to this offer within 7 days and I am then tied in? If so, what is the point of the 6 month offer expiry period.

Thanks in advance for any help!

user1977

GoonerByron said:

I was under the impression that if a mortgage offer lasts 6 months, that’s how long I could be free to change my mind if anything massively changed (rates went up massively) but the offer states ‘You have 7 days after we have confirmed our binding mortgage offer to you to reflect before committing yourself to taking out this loan’.

Does this mean I have to respond to this offer within 7 days and I am then tied in?

No, it doesn't say that you must commit yourself within 7 days. It's just a cooling-off period (which is fairly pointless as you can waive it anyway).

housebuyer143

As above, it just means if you accept it then the terms are binding on the lender (apart from a couple of reasons). 
If you do not complete the remortgage by the expiry date the offer just ends and you are not committed. 

GoonerByron

Ok that’s great, thanks both. Just wanted to be 100% sure