Have signed for a mortgage but not drawn it down yet…

T

TheBargyman

Registered User
Messages
16
We are ‘Sale Agreed’ on the house we are in the process of buying. We have approval in principle for a 5 year fixed rate mortgage, it’s the only mortgage we can get so changing providers isn’t an option. Since we got our mortgage approval the 5 year fixed interest rate has gone down by .75%, a substantial difference.

Are we tied into the old rate or should we be able to get the reduced rate without having to go through mortgage approval again?
 
Normally, but check with lender, the rate is only fixed from date of drawdown so you *should* benefit from the new lower rate. It's like this if the rates had gone up you can be sure they would be charging you the increased one! The usual way it happens is a new loan offer with amended rate is issued with the drawdown to solicitor. But again double check this with your lender to ensure that is their particular process.
 
You must log in or register to reply here.
Back
Top