Lending rate on loan offer

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hi, We recieved a loan offer on March 12th '08 which we signed with the solicitor. This loan offer contained a tracker rate which we had shopped around for before deciding to go with this bank(0.7 above ECB). Now we are ready to close and the bank has just reissued a new loan offer with a higher tracker rate(0.9 above ECB). The bank says that their rates have increased in the meantime. Our broker tells us that the loan offer means nothing and that you are not guaranteed a rate until you draw down the mortgage cheque.

Can the bank do this? We have no opportunity to shop around for a better rate now as we are being pushed to close by the builder.

Any help appreciated. Thanks!
 
Have a good look through the small print of the loan offer. Unfortunately there probably is a clause allowing the lender to withdraw or change the offer at any time before drawdown. There usually is.

I'm suprised that your loan offer was issued 12/3/2008 and amended so soon after with no warning. Who's the lender?

What size mortgage is it? What value property?
 
yes, I have spoken to solicitor and there is small print on the loan offer saying that the lender may adjust the rates from time to time. The lender is bank of Scotland Ireland.
 
They are entitled to do it. You could tell them you are going to move the mortgage (even if you are not) and see if they are willing to honour the original offer or meet you half way. They can only say no
 
Unfortunately a sign of the jittery times but something they can do as they wish. As the other poster says, tell them you will jump ship and see what they do.
 
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