Changing Mortgage Lenders after receiving Mortgage Offer but before Exchange

racebennon

Hello all, 

First off, Thank you all for helping me with my mortgage related questions over the past few weeks. It's been really helpful. 
I have come across another situation and was hoping you could provide your knowledge in this regards. So here is the current situation, 

After my offer on a property was accepted, the first thing I did was apply for a Mortgage with my current Bank (as that had lowest rate for me at that time), and we very quickly got the Mortgage offer. In the meantime, the solicitor had started work as well. Now we are almost at a point that I believe in the next month there will be a possible exchange. I was going through Comparison sites yet again and came to know that another lender (Skipton Building Society) is offering a remarkably low rate, which would bring my monthly payments down by a couple of hundred a month. So my question is as follows, 

1. Is it okay for me to apply for Mortgage with this new lender as I already have another mortgage offer in place. 
2. IF I go ahead with applying for this mortgage, as long as this is not approved, can I not tell my current bank and keep their offer (the initial one) in place (in case anything goes sideways and I don't get from the second lender)? OR do I need to inform the first lender before applying elsewhere? 

I will be grateful if you could help me in this regard, Thank you in advance 

silvercar

it’s all fine, other than another hard credit check on your file. If you feel you are at the margins of just scaling your mortgage approval I would be wary of too many credit checks. All the issues you mention are not a problem. 

racebennon

silvercar said:

it’s all fine, other than another hard credit check on your file. If you feel you are at the margins of just scaling your mortgage approval I would be wary of too many credit checks. All the issues you mention are not a problem. 

Thanks, so not letting my current mortgage lender know right now is fine?! Till I get my mortgage offer from the other lender? 

Hoenir

Are close to exchange are you? The solicitor also has work to do for the lender. Not just a question of you obtaining a new offer. They'll also charge you for the abortive time to date. 

silvercar

racebennon said:

silvercar said:

it’s all fine, other than another hard credit check on your file. If you feel you are at the margins of just scaling your mortgage approval I would be wary of too many credit checks. All the issues you mention are not a problem. 

Thanks, so not letting my current mortgage lender know right now is fine?! Till I get my mortgage offer from the other lender? 

I would think so, but ask your solicitor. Your solicitor works for you - no need to keep it a secret.

benkhn

Hi 
I am an Independant mortgage advisor happy to discuss further if needed but having an offer does not mean u have to stick with that lender. If you move to a new lender just check that the solicitors work with the new lender so you don't lose out on solicitor costs. Also bare in mind a new lender would be starting the process from scratch and a hard search will be done as long as your not rushed for time you can move to a new lender. But if it's because the new lender has a lower rate. All lenders rates are dropping so your current lender may have a lower rate.