FTB - mortgage drawdown

[mikmode]

Hello
I paid a deposit for a house back in Sept 06 off plans. I have just heard that the house will not be completed until May 07.
I have mortgage approval in principle.
How soon can I actually get my mortgage approved & signed off?
Do I have to:
(1) wait until the house is actually completed before I get the mortgage & the interest rates as of that date?, or
(2) Can I agree the mortgage now & avail of potentially better int rates & first year deals as of today?

 

[shoppergal]

Hi Milkmode,
Not an expert on this by any means but as far as I know:

.How soon can I actually get my mortgage approved & signed off?
You can get the apprval any time you want but depending on the institution it might only be valid for 6 months/1 year,

(2) Can I agree the mortgage now & avail of potentially better int rates & first year deals as of today?
Unfortunately not, you get the interest rate that's in place when you draw down. We bought a house off plans last April and have seen interest rates rise and rise but because we're not ready to draw down we just have to accept that whatever the rate is when we're ready is what we're stuck with.

I hope that helps. Good Luck.

 

[mikmode]

Hi shoppergal

unfortunately thats what i thought, its painful watching the rates increase esp as the completion date has been postponed a few times.

thanks for the reply