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mortgage rate dropping after deal agreed

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  • mortgage rate dropping after deal agreed

    I have started to purchase a house as i first-time buyer.
    I am at the stage of the solicitors conducting their searches and they have now sent me the mortgage deeds to sign to enable them to get the advance when the time comes.
    However, mortgage rates are now falling.
    If i sign this deed now am i locked in to the rate it states? Or will my mortgage provider still allow me to have the lower rate if it falls before contracts are exchanged?

  • #2
    Re: mortgage rate dropping after deal agreed

    Signing the deed as such does not commit you to the mortgage until your solicitors draw down the money form the lender.

    You could apply for a lower rate your present lender is now offering but you may have to pay admin/application fees etc again. In a lot of cases the lenders use a standard mortgage deed which makes no references to the interest rates in it so it could well be the same as the deed that you would have to sign if you got a new rate. If you are going to apply for a lower rate you need to keep your solicitor in the loop - do not assume he knows what is happening.

    No harm done signing the deed now - if you get a new mortgage offer and the lender sends your solicitor a different form of deed for you to sign then you just sign it and your solicitors bins the earlier one.
    RICHARD WEBSTERwww.rwco.co.uk
    As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

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    • #3
      Re: mortgage rate dropping after deal agreed

      That's really helpful. I'll send in the paperwork today - i don't really want to cause delays.

      My own lender's rate hasn't dropped yet but they've always had the best rates on the type of deal i want, now two other lenders have slightly better rates - so i really think my lender will drop theirs very soon to match - hopefully next week.

      It should go to contracts in the next couple of weeks and I really don't want to hold up the sale, so if my lender has not dropped their rate by then i will go ahead with the current deal.

      Thanks again for taking the trouble to reply - much appreciated.

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