Can I Change My Mortgage Rate Post Mortgage Offer?
Many mortgage offers will be valid for 6-months, this is an unofficial industry standard but can and will change depending on the lender and the product.
So, you might wonder, what happens if you select a rate at the outset and three months after the mortgage offer is issued, before you complete, the rates have dropped.
Are you stuck with your rate before you exchange/complete?
The answer is a resounding no. Just because you have a mortgage offer, it doesn't mean you need to use it.
For remortgages especially, it's important to secure a mortgage offer as soon as possible. We can always request a new rate if they lower later, but if they rise at a later stage we will have missed our chance.
It's the same in the purchase journey, secure that rate at the first possible opportunity, it can always be reviewed later. What I would say is that the most important thing to keep in mind is that the change of rate doesn't affect your purchase or remortgage timescale. We certainly don't want to create any hold ups.
Our process, once a mortgage offer has been achieved, is to set a reminder a month before your scheduled remortgage or 2 months after your offer has been accepted on a purchase. This way we can comfortably review your rate without the risk of affecting your purchase or remortgage.
There are options when it comes to selecting a new rate, you can either submit a completely new application with a new lender if the deal is fantastic and we have the time.
Or we can request a new rate with the existing lender. In this scenario a lender will usually recredit score the applicants and check for any changes which may affect affordability before they issue the new offer.
Your solicitor will need to be in possession of your mortgage offer at the point of exchange and will need to have the mortgage offer in hand a good week before completion in order to request funds in time for completion.
These processes can be far from simple, the impact of getting it wrong can be costly, not just financially. This is why it's important to have a Mortgage Advisor to handle these requests. We'll understand the timescales and implications of all options, we fully manage the process on your behalf to ensure it all runs smoothly