Can a mortgage offer be amended if Rates fall

racebennon

Hello all, 
I am a first time buyer and in process of securing a property. I am getting close to contract exchange, about a week back after discussing with my mortgage advisor (who works for the same bank that is the lender), I've had renewed my mortgage offer. However, upon checking today, I've come to know that the rates have dropped a little than what I have been offered. I wanted to know if I can request the lender to reissue mortgage offer with the new rate? Or am I too late in doing so? 
Can you please help me with this 
Thank you all in advance for any advice or help
Regards

amnblog

Yes they can, but you need to check with your Solicitor about timing.

The Solicitor sends something call a Certificate of Title to the Lender to request the funds. If the COT has already gone to the Lender a new one may need to be send following a rate change.

Speak to your Mortgage Adviser first.

400ixl

ill really depend on how close you are as it takes time to do which you may not have. You can only ask.

racebennon

amnblog said:

Yes they can, but you need to check with your Solicitor about timing.

The Solicitor sends something call a Certificate of Title to the Lender to request the funds. If the COT has already gone to the Lender a new one may need to be send following a rate change.

Speak to your Mortgage Adviser first.

Thanks a lot, yes I believe my Solicitor hasn't reached that point where they'll request funds from the Lender, they're still in process of sending Inquiries to the Seller solicitor. I've messaged my Mortgage Advisor about this as well. 

By the way, is there a limit on who many times can you request the lender to revise the offer, as nowadays I've noticed rates are dropping every other day so possibility is it'll drop further ... 

BarelySentientAI

racebennon said:

amnblog said:

Yes they can, but you need to check with your Solicitor about timing.

The Solicitor sends something call a Certificate of Title to the Lender to request the funds. If the COT has already gone to the Lender a new one may need to be send following a rate change.

Speak to your Mortgage Adviser first.

Thanks a lot, yes I believe my Solicitor hasn't reached that point where they'll request funds from the Lender, they're still in process of sending Inquiries to the Seller solicitor. I've messaged my Mortgage Advisor about this as well. 

By the way, is there a limit on who many times can you request the lender to revise the offer, as nowadays I've noticed rates are dropping every other day so possibility is it'll drop further ... 

No limit of number of times, but a limit on when.

Obviously (at least I hope it's obvious to you) you couldn't change the rate on the day before taking the funds - and depending on the lender for quite some time before that.

Zerforax

My mortgage broker has said that a number of banks now put a limit on how often you can change the product. Obviously it creates more work from the bank so if every applicant keeps re-apply with every small drop in rates, you can see how that causes issues for the banks.

For NatWest, I was told we can only do one product change before having to go back to a full application.

kingstreet

Zerforax said:

My mortgage broker has said that a number of banks now put a limit on how often you can change the product. Obviously it creates more work from the bank so if every applicant keeps re-apply with every small drop in rates, you can see how that causes issues for the banks.

For NatWest, I was told we can only do one product change before having to go back to a full application.

I wasn't told that when I called them to do a change on Monday. Are you sure it's not your broker's attitude to having to make the amendments that's the issue? I'm going to check with our NatWest BDM as I believe such action would be in breach of TCF/Consumer Duty requirements.

kingstreet

Our NatWest BDM has replied;-

"No limits on the amount of times you can change the rate with Natwest ;0)"

Zerforax

kingstreet said:

Zerforax said:

My mortgage broker has said that a number of banks now put a limit on how often you can change the product. Obviously it creates more work from the bank so if every applicant keeps re-apply with every small drop in rates, you can see how that causes issues for the banks.

For NatWest, I was told we can only do one product change before having to go back to a full application.

I wasn't told that when I called them to do a change on Monday. Are you sure it's not your broker's attitude to having to make the amendments that's the issue? I'm going to check with our NatWest BDM as I believe such action would be in breach of TCF/Consumer Duty requirements.

kingstreet said:

Our NatWest BDM has replied;-

"No limits on the amount of times you can change the rate with Natwest ;0)"

What is BDM? Really helpful to know.

kingstreet

Business Development Manager

our_des

racebennon said:

Hello all, 
I am a first time buyer and in process of securing a property. I am getting close to contract exchange, about a week back after discussing with my mortgage advisor (who works for the same bank that is the lender), I've had renewed my mortgage offer. However, upon checking today, I've come to know that the rates have dropped a little than what I have been offered. I wanted to know if I can request the lender to reissue mortgage offer with the new rate? Or am I too late in doing so? 
Can you please help me with this 
Thank you all in advance for any advice or help
Regards

We secured a lower rate the week before exchange, I messaged our solicitor to make sure it was okay to do before we went ahead and then afterwards to let her know what was changing. We opted to reduce the term rather than monthly payments, it knocked almost 4 years off the original and saved us paying a huge amount of interest.