Can mortgage rate go up after we got the offer ? FIRST TIME BUYER

kasu_78

Guyz,

I got offer from halifax and it stated following

The interest rate applicable to this mortgage account can go up or down. We will not notify you of any change in rate between the date of this offer and the date you take out the mortgage. We will confirm what the rate(s) is when you take out the mortgage.

Does this mean mortgage rate can go up when i exchanged the contracts and halifax releases money ?

thanks in advance

AJ1982

If you have gone for a tracker product then yes, My Halifax tracker product kicks in on the 1st of the next month after the rate change. In my case, it was to my benefit as the rates went down. Fixed rate deals will likely have an expiry time.

Doozergirl

It depends on what kind of mortgage it is. That wording would indicate that it's some kind of Tracker mortgage in which case it will go up and down with rates.

cozlw

Doesnt it just depend on the terms of the mortgage?

Iv taken out a fixed Halifax 5 year mortgage and it doesnt have this wording, therefore I guess you are on a tracker?

kasu_78

Mine is a 2 yr fixed rate mortgage (interest-only) with 10% annual overpayment option....

Would this be applicable to this product?

Doozergirl

kasu_78 wrote: »

Mine is a 2 yr fixed rate mortgage (interest-only) with 10% annual overpayment option....

Would this be applicable to this product?

Shouldn't be, no. But we all know they're playing to their own rules right now.

Check with your broker.

kasu_78

just got confirmation from mortgage broker that my rate will not change despite that confusing paragraph in the offer, as it is fixed rate.

Thanks for all your time guyz.....

cheepskate_2

kasu_78 wrote: »

Mine is a 2 yr fixed rate mortgage (interest-only) with 10% annual overpayment option....

Would this be applicable to this product?

I wont change until the end of fixed rate.
For some reason mine said this as well and i am with co-op