Arranging mortgage before property built

[Tazz]

Hi

Myself and my partner have signed a contract on a place that won't be complete until October at the earliest and I was wondering how everyone else in this situation arranged their mortgage. Did you wait until you had to were you able to arrange your mortgage in advance at the rates applicable then?

The point being I would like to fix my mortgage now at today's rates rather than what the rate is likely to be after possible hikes over the next 3 months. I know that I can simply ask my mortgage lender but I just wanted to know others experiences of the issue.

 

[foxylady]

Hi

Myself and my partner have signed a contract on a place that won't be complete until October at the earliest and I was wondering how everyone else in this situation arranged their mortgage. Did you wait until you had to were you able to arrange your mortgage in advance at the rates applicable then?

The point being I would like to fix my mortgage now at today's rates rather than what the rate is likely to be after possible hikes over the next 3 months. I know that I can simply ask my mortgage lender but I just wanted to know others experiences of the issue.

I am not sure that is possible unlesss you start paying the mortgage now otherwise it will just be at the rates that are applicable when drawing down mortgage.

 

[Sarah W]

You can't fix a mortgage at today's rates for a loan that will not be drawn down until later in the year - the rates that apply at that time will be the ones to chose from. You will need to have a mortgage offer in place for signing contracts which is generally 21 days from paying your deposit however you are not tied into that offer/that lender and you can switch at any time up to 3/4 weeks prior to completion.

Sarah

www.rea.ie

 

[Tazz]

That's what I thought. Just wanted to see if anyone had got round it.

Thanks for the help.

 

[Hel_n]

The rate you pay is the rate in place when you draw down your mortgage. If the builders are looking for stage payments or if you are drawing down part of your mortgage as a deposit you may be able to avail of a lower interest rate.