Mortgage deal turnaround times

cs0rpc

Hi there,

I have a BTL mortgage for which the last product lapsed on 1st December and moved to standard variable rate.  I allowed this to happen to enable a large overpayment, which I have since done.  I applied for a new product with same provider so no valuation, solicitor issues to worry about.  I have until 18th December to withdraw or it goes through and takes effect on the 1st January.

Reports in press suggest that base rates could be cut on 18th December (@90% likely), so I'm thinking of pulling the offer and reapply once rates are cut and mortgage rates are updated.  This would leave ~7 days for mortgage offer to come through and for provider to make it take effect by 1st January.  Is this realistic to expect it to go through in such timeframes to justify pulling current deal?

Thanks,

R.

beanielou

I've asked for your post to be moved to the mortgage board for a better response.

kingstreet

cs0rpc said:

Hi there,

I have a BTL mortgage for which the last product lapsed on 1st December and moved to standard variable rate.  I allowed this to happen to enable a large overpayment, which I have since done.  I applied for a new product with same provider so no valuation, solicitor issues to worry about.  I have until 18th December to withdraw or it goes through and takes effect on the 1st January.

Reports in press suggest that base rates could be cut on 18th December (@90% likely), so I'm thinking of pulling the offer and reapply once rates are cut and mortgage rates are updated.  This would leave ~7 days for mortgage offer to come through and for provider to make it take effect by 1st January.  Is this realistic to expect it to go through in such timeframes to justify pulling current deal?

Thanks,

R.

Unless taking a tracker, current mortgage products will already reflect what the market thinks will happen to base rate for about three months ahead.

ACG

Just to expand on what Kingstreet has said, lenders tend to make changes in the weeks leading up to the announcement as they tend to have a pretty good of what will happen. 

Thats not to say there will not be changes after the event, but it is unlikely to be the case that the base rate dops by 0.25% and then mortgage rates drop by 0.25%.