Mortgage recalculation after contract exchange and before completion - First time buyer

arkhamutd

Hi, Following the interest rate slash by Bank of England I am curious to know if it is possible to have my mortgage offer recalculated to get a better rate?
I am at a stage where I've completed the contract exchange and payed my initial 10% deposit and awaiting house completion which is likely by mid- December. Since technically the mortgage hasnt started i was hopeful this can be possible? The current offer is a 2yr fixed deal.
Thanks 

la531983

Banks wont always change their entire product line the same day as a rate rise or cut, they likely had already priced it in. Unless your bank has change their product lines you cant ask for a cut, no.

housebuyer143

Have you checked if there is a better rate?

ACG

The base rate has changed.
It doesnt mean mortgage rates will, if anything mortgage rates have actually been going up in the last few weeks. 

You can ask, but having exchanged contracts you need to be careful. With some lenders they can pull the offer completely if you no longer pass the credit check. Some lenders are fine and the change in product wont affect anything but check beforehand as having exchanged I am not sure it is worth the risk if you are with a lender where the offer could be pulled. 

saajan_12

Question 1 is whether they are offering a new, lower rate if you were to apply anew today. New fixed rates are based on what the bank thinks over that fixed period, so won't always follow the base rate which will be partly priced in already. 

Question 2 is whether you have the time to get a new offer, including any re-checks they want to do in time for completion. Usually with ready built houses and 2-3 weeks between exchange and completion it might not be worth the risk, but with a new build that is at least a month away, maybe more, you might just have enough time. 

The alternative is you could see if theres a new lower rate with another lender. If yes, then you could start an application with them. If it doesn't come through in time then you still have the current mortgage offer. If it does come through then your soclicitor should just draw down on the new one and let the old offer expire.