Can the bank pull a deal you're previously secured?

B0bbyEwing

Annoyingly I only recently found out you could secure a mortgage deal. Up until a few weeks ago, I thought you had to wait for your current deal to end OR if you're in the no penalty stage then if you selected a different deal then it had to start straight away. This has cost me a bit over what I could've been paying had I known sooner but on the other side of that coin, if it wasn't for this forum I wouldn't have known & I'd still be waiting for my deal to end so could've been better, could've been worse.

Have now secured in a 10yr Nationwide fix on 4.99%. Paid up my £999 fee.

Question is ... say rates shoot up between now & the date this deal kicks in for me. 

Can Nationwide pull it (for me)? They'd have to give me my £999 back but basically the question is how secure is the agreement?

Edi81

Short answer is no. 

Longer answer is that banks secure their funding needs before offering to customers so once offered to a customer it’s locked in. 

CSI_Yorkshire

If you've actually secured it, as in actually signed the paperwork so it will start on the appropriate date without any further information, then there are very very few reasons that they could cancel the deal (for example if you declare bankruptcy, were convicted of serious fraud, or put on the financial sanctions list).

B0bbyEwing

Thanks for the responses.

My concern was more from the angle of - rates have shot up, this deal is too good to offer customers, we're not going to make as much money doing X as we can Y, we're going to pull it & tough luck.

Maybe my train of thought & lack of trust has been too skewed from working for my employer for as long as I have.

CSI_Yorkshire

That's not how lending rates work.

The bank doesn't have a pile of cash that they are deciding to either lend to you at one rate or to someone else at a higher rate.

B0bbyEwing

I wasn't really thinking about "someone else". 

More the rate I agreed on is 4.99% but now <time> has passed & the going rate for the same is <9.00%> then forget the agreement of 4.99%, you now need to pay 9.00%. 

But as you've said that my 4.99% is secure, that'll do me. Thanks.