Questions about product/rate swap - FirstDirect

ClaraSolis

So I've just had a call with FD to swap our rates over. We've received the documentation. Our current rate ends in September, and I asked if we could switch to this new rate when our old one ends. I didn't actually know that was an option before, I thought the new rate would instantly replace your old one. Kicking myself now, as I could've gotten a much lower deal a month or so ago, but family emergencies got in the way.   

Anyway, would the documentation show that the rate starts at the end of the old one? Maybe I'm reading over this, but I can't see it. There are no dates mentioned at all?

If we sign this deal, and the mortgage rates go down between now and when our current deal ends in September, I assume we can't change to any lower rates? As soon as we sign this document, we are locked into this rate?

K_S

@clarasolis I've no clue how FD works specifically but generally speaking -

- the illustration (KFI / ESIS) should show the product and rate. Usually the date on the illustration will be an assumption (often the 1st of the next month) just to be able to show what the numbers. Somewhere else in the documentation there *should* be some mention of when the PT is booked to kick in.

- the vast majority of lenders will allow you to switch to a different product if rates go down between now and completion. But each lender might have particular peculiarities (eg: you'll need to spend one month on SVR before the new rate kicks in, etc.) so do check with FD.

ClaraSolis said:

So I've just had a call with FD to swap our rates over. We've received the documentation. Our current rate ends in September, and I asked if we could switch to this new rate when our old one ends. I didn't actually know that was an option before, I thought the new rate would instantly replace your old one. Kicking myself now, as I could've gotten a much lower deal a month or so ago, but family emergencies got in the way.   

Anyway, would the documentation show that the rate starts at the end of the old one? Maybe I'm reading over this, but I can't see it. There are no dates mentioned at all?

If we sign this deal, and the mortgage rates go down between now and when our current deal ends in September, I assume we can't change to any lower rates? As soon as we sign this document, we are locked into this rate?