Renegotiating mortgage rate?

BinaryJava

Hi all,

Myself and my partner are getting closer to being able to start looking at properties and getting our mortgage in principle. We are under the impression we have to wait until October as my partner is in contract based employment so we needed 1 year of proof of income before we could declare how much we earn as a household.

However, she also has a LISA that was opened in January of this year, so would need to wait until January before we could use it without penalty. Is it possible to get a mortgage in principle in October knowing that the LISA will be unlocked in January, or could we renegotiate the mortgage terms after getting an initial estimate based on what we have in the bank now?

Also wondering in terms of interest rates and market conditions, maybe we just withdraw from the LISA with the penalty, or if it will be worth waiting as interest rates might come down?

TheJP

You cant negotiate rates with a lender, you reapply based on the products they have on offer at the time and go through the process again.

Mark_d

You can certainly try to get a mortgage in principle in October with a view to purchasing in January.  What do you mean by "renegotiate the mortgage terms after getting an initial estimate based on what we have in the bank now"?

The best time to buy will depend on mortgage interest rates, but also house prices and the amount you're wasting each month renting your current home.

Yorkie1

A mortgage in principle, before you find a property, is simply an indication of how much the lender is willing to lend you, all else being equal. It's not an actual mortgage offer with an interest rate attached.

It's only when you have an offer accepted on an actual property that you actually apply for a mortgage (with that or any other lender). At that point, you take the interest rates on offer - there's no individual negotiation.