changing mortgage product after offer?

zeeww_2

hi... i've got a 3 year fixed from halifax a month back, and now is getting close to exchange, maybe in the next couple weeks. i've just seen new products from halifax at 5.89% for 3 years, which is lower than my current offer.

is it ok for me to change to the cheaper product as i havent exchange yet? do i need to go through another valuation and credit search, or it is just a case of my broker informing halifax of the product change and get a new offer out?

is it advisable to do this? thanks!

nathanhill69

If you have paid a fee for the mortgage (arrangement fee/booking fee) then I would think you would loose that as well as having to pay for any arrangement/booking fee associated with the new mortgage product. Someone more qualified may be able to give you a more definitive answer, although best see what Halifax have to say.

TBH how much are you really going to save over the three years with the new deal? Is it worth the hassle and extra stress trying to get a new mortgage product and potential delays on your exchange date?

zeeww_2

it'll reduce my monthly payment by about 25 pounds.... which i think is still quite a substantial savings...
as for the product fee, i havent paid it yet, as the broker said i can pay in a branch or over the phone within 2 weeks after the mortgage started...and the product fee is the same.
exchange date is not a problem, as long as i get a cheaper rate, i am not worried about the date, as i am not in any chain.
on the other hand, what are the chances that i will be rejected the new product offer? and if i do get rejected, do i still keep my old offer?

thanks

Tiddler_2

Are you borrowing less than 75% of the value of the property? If not then the deal isn't available to you.

If you are borrowing less than 75% then there is nothing to stop you changing, whilst in theory the Halifax could charge you 2 fees, I have never known them to do this.

Speak to your adviser and tell him you've noticed the deal and think it might be cheaper, he will then confirm this for you. It will only take an email to get it changed and so should be quite quick.