Should I wait to accept mortgage offer?

Daisy5

I been offered a remortgage with a 5-year fixed rate of 5.39% due to start in February next year with a different lender to my current mortgage. At the time of application, this was a pretty good rate and lower than my current lender. However, my current lender's rate is now down to 5.37%. Am I able to withdraw from the offer? I have not signed anything to confirm/ complete. Also is it worth me shopping around again? I have a good credit score apart from the hard search done recently for the current offer I now have. Any advice would be appreciated as I don't know what to do for the best! 

superstylin

Even if you had accepted the offer it still wouldn't be binding until you had actually drawn down the money in February, unless you'd paid an upfront fee which I'm guessing you haven't since it's still at offer stage. 

I'd shop around because there are a number of 5 yr fixed deals below 5% now. Every penny counts in today's climate! 

TheJP

Also look at some tracker rates, some are 0.5% above BOE base rate which would be 3.5% and at most over the next 12 months could be 4.5%. Virgin have a 2 year tracker at 0.6% above BOE that will allow you to transfer onto a fixed rate with no ERC penalty.

snowqueen555

Daisy5 said:

I been offered a remortgage with a 5-year fixed rate of 5.39% due to start in February next year with a different lender to my current mortgage. At the time of application, this was a pretty good rate and lower than my current lender. However, my current lender's rate is now down to 5.37%. Am I able to withdraw from the offer? I have not signed anything to confirm/ complete. Also is it worth me shopping around again? I have a good credit score apart from the hard search done recently for the current offer I now have. Any advice would be appreciated as I don't know what to do for the best! 

Did you use a broker? I am applying to Nationwide and each time the rate goes down they are able to update the application on my behalf. It was 5.39% but now 5.04%. I'm hoping it goes down again by the time the purchase goes through because the lowest rate I can see is 4.69%.

london21

Shop around and go for the best value for money. 

Rates have gone down a bit recently.

Next BOE rate increase is on 15/12/22

PMcG86

snowqueen555 said:

Daisy5 said:

I been offered a remortgage with a 5-year fixed rate of 5.39% due to start in February next year with a different lender to my current mortgage. At the time of application, this was a pretty good rate and lower than my current lender. However, my current lender's rate is now down to 5.37%. Am I able to withdraw from the offer? I have not signed anything to confirm/ complete. Also is it worth me shopping around again? I have a good credit score apart from the hard search done recently for the current offer I now have. Any advice would be appreciated as I don't know what to do for the best! 

Did you use a broker? I am applying to Nationwide and each time the rate goes down they are able to update the application on my behalf. It was 5.39% but now 5.04%. I'm hoping it goes down again by the time the purchase goes through because the lowest rate I can see is 4.69%.

I'm the same but once you get an offer you can only make one amendment.

We got offered 5.38% and they're now under 5%. We still have 6months left so will be waiting til the last minute with the way things are trending

Troy_af

snowqueen555 said:

Daisy5 said:

I been offered a remortgage with a 5-year fixed rate of 5.39% due to start in February next year with a different lender to my current mortgage. At the time of application, this was a pretty good rate and lower than my current lender. However, my current lender's rate is now down to 5.37%. Am I able to withdraw from the offer? I have not signed anything to confirm/ complete. Also is it worth me shopping around again? I have a good credit score apart from the hard search done recently for the current offer I now have. Any advice would be appreciated as I don't know what to do for the best! 

Did you use a broker? I am applying to Nationwide and each time the rate goes down they are able to update the application on my behalf. It was 5.39% but now 5.04%. I'm hoping it goes down again by the time the purchase goes through because the lowest rate I can see is 4.69%.

Hi.

I have an offer accepted with nationwide on the same 5.39%. I've now seen on the comparison sites they are now doing the same 5 year on 5.09%.

I have not heard anything from the lender or my broker about the rates changing or if it is possible to now be put on the lower rate. 

I really do not want to mess around having to apply for a new mortgage and having hard searches in a short space of time etc, but if these rates drop anymore I would be looking at significant savings and feel as if I would have no choice but to switch, even though I am looking to complete within the next few weeks.

Does anyone know what my options are here? Should I contact the lender myself or broker, or even just pull out all together and reapply to the same lender on the lower rate?

superstylin

@Troy_af

They can simply make a recalculation at the new rate, just contact your broker. 

Troy_af

superstylin said:

@Troy_af

They can simply make a recalculation at the new rate, just contact your broker. 

Hi.

Does this involve a full new application / deed to be signed? I have just signed the mortgage deed and could have trouble singing another due to working away.

Thanks.

superstylin

@Troy_af

No new applications or deeds need be signed as you're not changing loan amount or term, and your circumstances haven't changed. It's simply a recalculation. There are plenty of people on here who have done it.

Troy_af

superstylin said:

@Troy_af

No new applications or deeds need be signed as you're not changing loan amount or term, and your circumstances haven't changed. It's simply a recalculation. There are plenty of people on here who have done it.

My broker has told me that there is a risk because the original offer was referred and it will need to be re scored.

I do not understand what the risk is as my finances have not changed whatsoever and if the rates have dropped then it doesn't take a rocket scientist to calculate that my affordability if anything has INCREASED as a result not decreased.

Thanks for any help.