Re-mortgage now or wait?
Discussion
Mark83 said:
I think I know the answer but maybe one for Sarnie et al.
Current mortgage deal of 1.3% ends 30 Sept. We can switch from 30 March. 50% LTV, maybe less but comfortably under the 60% LTV our lender's best rate stop at.
Baby due any day. I'm PAYE. My wife is self-employed. She will have no income for six months and we're self-funding maternity leave.
Plan is to stick with our current lender and fix soonish for five years. Rationale being last time we renewed with our current lender, we literally ticked a box and no interrogation. At the end of five years, my wife will be back at work and have 2+ financial years of accounts and it's business as usual.
Or would our lender want more info for affordability now rates are up when switching rates?
No, they won't.....Current mortgage deal of 1.3% ends 30 Sept. We can switch from 30 March. 50% LTV, maybe less but comfortably under the 60% LTV our lender's best rate stop at.
Baby due any day. I'm PAYE. My wife is self-employed. She will have no income for six months and we're self-funding maternity leave.
Plan is to stick with our current lender and fix soonish for five years. Rationale being last time we renewed with our current lender, we literally ticked a box and no interrogation. At the end of five years, my wife will be back at work and have 2+ financial years of accounts and it's business as usual.
Or would our lender want more info for affordability now rates are up when switching rates?
Sarnie said:
Your understanding isn't correct. An offer isn't in anyway legally binding......they reserve the right to withdraw the offer for any reason.......market conditions could change, they could credit check you and you've taken our additional credit commitments.....you could lose or change your job......
Offer withdrawal isn't common but it's certainly possible and people shouldn't tell other people that it won't or can't happen.......
Sorry, we weren't talking about those factors were we? Obviously if someone has fibbed or your financial circumstances have materially changed then yes I can understand them changing their mind and taking their ball away.Offer withdrawal isn't common but it's certainly possible and people shouldn't tell other people that it won't or can't happen.......
Back to the question previously asked, have you ever come across a lender deciding to withdraw an otherwise valid and properly issued mortgage offer, simply because the rate offered now in the cold light of day now looks very low marked to the rest of the market?
I certainly haven't heard of it happening but if you've come across such a thing happening then please do say..
princeperch said:
Sarnie said:
Your understanding isn't correct. An offer isn't in anyway legally binding......they reserve the right to withdraw the offer for any reason.......market conditions could change, they could credit check you and you've taken our additional credit commitments.....you could lose or change your job......
Offer withdrawal isn't common but it's certainly possible and people shouldn't tell other people that it won't or can't happen.......
Sorry, we weren't talking about those factors were we? Obviously if someone has fibbed or your financial circumstances have materially changed then yes I can understand them changing their mind and taking their ball away.Offer withdrawal isn't common but it's certainly possible and people shouldn't tell other people that it won't or can't happen.......
Back to the question previously asked, have you ever come across a lender deciding to withdraw an otherwise valid and properly issued mortgage offer, simply because the rate offered now in the cold light of day now looks very low marked to the rest of the market?
I certainly haven't heard of it happening but if you've come across such a thing happening then please do say..
The_Doc said:
Question.
Can the lender (Halifax) withdraw or cancel the product they have offered to me? - 4.18%, 5 yr fixed?
I have the offer letter, but am not due to complete remortage until late May 2023.
The signed Mortgage Deed is with their appointed solicitors currently.
Obviously I am suspicious that with a base rate rise they might see their offer/decision as not profitable, and welsh on the deal.
It’s ‘welch’ not “welsh”. Just saying, like, isn’t it. Can the lender (Halifax) withdraw or cancel the product they have offered to me? - 4.18%, 5 yr fixed?
I have the offer letter, but am not due to complete remortage until late May 2023.
The signed Mortgage Deed is with their appointed solicitors currently.
Obviously I am suspicious that with a base rate rise they might see their offer/decision as not profitable, and welsh on the deal.
princeperch said:
Sorry, we weren't talking about those factors were we? Obviously if someone has fibbed or your financial circumstances have materially changed then yes I can understand them changing their mind and taking their ball away.
Back to the question previously asked, have you ever come across a lender deciding to withdraw an otherwise valid and properly issued mortgage offer, simply because the rate offered now in the cold light of day now looks very low marked to the rest of the market?
I certainly haven't heard of it happening but if you've come across such a thing happening then please do say..
Yes.Back to the question previously asked, have you ever come across a lender deciding to withdraw an otherwise valid and properly issued mortgage offer, simply because the rate offered now in the cold light of day now looks very low marked to the rest of the market?
I certainly haven't heard of it happening but if you've come across such a thing happening then please do say..
Sarnie said:
Why are you surpised?
How many years have you been a mortgage broker?
I've had 8 or 9 different mortgages over the years and never, not once, has it crossed my mind that the lender would withdraw a properly made and valid mortgage offer once the offer has been made unless there were extremely exceptional circumstances.How many years have you been a mortgage broker?
You have also had an explanation from someone here who works in the financial services industry about how mortgages are both funded and created which would again point to the fact that when a mortgage offer is made the money is earmarked and set to one side by the lender.
I can only therefore repeat my question: can you tell us anymore apart from just giving a one word answer?
Perhaps Santander were just feeling kind and I got lucky when they came good on their agreement to let me borrow at 0.99pc at a point when inflation was rocketing and mortgage deals were getting repriced on an almost weekly basis?
princeperch said:
I've had 8 or 9 different mortgages over the years and never, not once, has it crossed my mind that the lender would withdraw a properly made and valid mortgage offer once the offer has been made unless there were extremely exceptional circumstances.
You have also had an explanation from someone here who works in the financial services industry about how mortgages are both funded and created which would again point to the fact that when a mortgage offer is made the money is earmarked and set to one side by the lender.
I can only therefore repeat my question: can you tell us anymore apart from just giving a one word answer?
Perhaps Santander were just feeling kind and I got lucky when they came good on their agreement to let me borrow at 0.99pc at a point when inflation was rocketing and mortgage deals were getting repriced on an almost weekly basis?
I'm sorry that my answer, based on 20 years of being a mortgage broker doesn't fit with the answer that you wanted to provide someone, based on the fact you've had 8 or 9 mortgages over the years.You have also had an explanation from someone here who works in the financial services industry about how mortgages are both funded and created which would again point to the fact that when a mortgage offer is made the money is earmarked and set to one side by the lender.
I can only therefore repeat my question: can you tell us anymore apart from just giving a one word answer?
Perhaps Santander were just feeling kind and I got lucky when they came good on their agreement to let me borrow at 0.99pc at a point when inflation was rocketing and mortgage deals were getting repriced on an almost weekly basis?
I have to spend a lot of time on here, correcting unqualified misadvice.
You asked the question and I gave you the answer.
I respect DonkeyApple massively, but he works in a different sector and won't have seen the mortgage industry close up like I have since 2003.
If you want examples, look no further than Southern Pacific, GMAC, BM Solutions, Paragon.......lot of lenders have done it over the years, when it suited them........
princeperch said:
I'm surprised to hear this.
Can you provide any more details?
In 25 years I have never had an offer withdrawn other than for the death of a borrower or further negative info coming to light such as a re-score. Wife 30 yrs in, she has not had it either.Can you provide any more details?
I have never seen an offer being pulled due to market changes or heard of it.
TTmonkey said:
The_Doc said:
Question.
Can the lender (Halifax) withdraw or cancel the product they have offered to me? - 4.18%, 5 yr fixed?
I have the offer letter, but am not due to complete remortage until late May 2023.
The signed Mortgage Deed is with their appointed solicitors currently.
Obviously I am suspicious that with a base rate rise they might see their offer/decision as not profitable, and welsh on the deal.
It’s ‘welch’ not “welsh”. Just saying, like, isn’t it. Can the lender (Halifax) withdraw or cancel the product they have offered to me? - 4.18%, 5 yr fixed?
I have the offer letter, but am not due to complete remortage until late May 2023.
The signed Mortgage Deed is with their appointed solicitors currently.
Obviously I am suspicious that with a base rate rise they might see their offer/decision as not profitable, and welsh on the deal.
https://www.merriam-webster.com/dictionary/welsh%2...
I checked. And it seems both are colloquially available.
WeiB.beer said:
My existing Halifax mortgage fix ends in September 2023, Halifax offered 3 new deals 2,5 and 10 years fixed.
We’re in our ‘forever’ home and the 10 year fix was the most competitive, so thankfully we locked this in last weekend at 3.95% for 10 years with no arrangement fee.
10 Years seems extreme, but at least it will be stable (for better or worse) for a good time to come.We’re in our ‘forever’ home and the 10 year fix was the most competitive, so thankfully we locked this in last weekend at 3.95% for 10 years with no arrangement fee.
There are too many variables for me to be ok with being locked in for that long - just personal opinion,
Sarnie said:
I'm sorry that my answer, based on 20 years of being a mortgage broker doesn't fit with the answer that you wanted to provide someone, based on the fact you've had 8 or 9 mortgages over the years.
I have to spend a lot of time on here, correcting unqualified misadvice.
You asked the question and I gave you the answer.
I respect DonkeyApple massively, but he works in a different sector and won't have seen the mortgage industry close up like I have since 2003.
If you want examples, look no further than Southern Pacific, GMAC, BM Solutions, Paragon.......lot of lenders have done it over the years, when it suited them........
Well caddyshack below together with his missus doesn't seem to agree with you. They have nearly half a century of experience between them. I have to spend a lot of time on here, correcting unqualified misadvice.
You asked the question and I gave you the answer.
I respect DonkeyApple massively, but he works in a different sector and won't have seen the mortgage industry close up like I have since 2003.
If you want examples, look no further than Southern Pacific, GMAC, BM Solutions, Paragon.......lot of lenders have done it over the years, when it suited them........
Are you saying they're wrong?
princeperch said:
Well caddyshack below together with his missus doesn't seem to agree with you. They have nearly half a century of experience between them.
Are you saying they're wrong?
I've answered your question and given you the examples of lenders that have done it in the past.Are you saying they're wrong?
I can't speak for others and their experience.
But please carry on giving people the benefit of your 8 mortgages
Let me be clear: I've got no skin in the game. And I won't accuse you of lying or being sensationalist because that would be impolite.
Two brokers who have been working in the same industry of you have said they have never heard of or come across a lender pulling an offer because the rate was "too low".
I can imagine situations where lenders say we aren't going to lend on a block of flats because we have too much exposure there or an offer being pulled because someone lost their job or died or whatever.
I am afraid I still fail to believe that a lender would pull the rug because they've offered a rate which a few weeks later, and within the validity period of the offer, now seems "too cheap".
If you manage to learn how to respond to a post using information and data (and by the way simply typing "...." after everything you say doesn't make it right) then we are all ears as to the examples you have which are pertinent to the specific question that was asked.
Two brokers who have been working in the same industry of you have said they have never heard of or come across a lender pulling an offer because the rate was "too low".
I can imagine situations where lenders say we aren't going to lend on a block of flats because we have too much exposure there or an offer being pulled because someone lost their job or died or whatever.
I am afraid I still fail to believe that a lender would pull the rug because they've offered a rate which a few weeks later, and within the validity period of the offer, now seems "too cheap".
If you manage to learn how to respond to a post using information and data (and by the way simply typing "...." after everything you say doesn't make it right) then we are all ears as to the examples you have which are pertinent to the specific question that was asked.
From a legal perspective - though not a lawyer - it's certainly true. Contracts and their binding obligations aren't formed until offer, acceptance and consideration (exchange of value). Product switch remortgage is a mildly interesting one in terms of consideration as there's no new transfer of funds. Possibly once you've paid the product fee?
trashbat said:
From a legal perspective - though not a lawyer - it's certainly true. Contracts and their binding obligations aren't formed until offer, acceptance and consideration (exchange of value). Product switch remortgage is a mildly interesting one in terms of consideration as there's no new transfer of funds. Possibly once you've paid the product fee?
Yup. Until legally binding, it's not legally binding but I think PP isn't concerned in that regard. Likewise, the lender's offer will stipulate that they can pull it whenever they like and for whatever reason but I don't think that's what PP is asking about either. From what I can see he is asking if one of the many reasons for a lender pulling an offer is just because the base rate has changed.
The answer is that in theory, of course, but I think he appreciates that and is asking if anyone in the business or more than 14 years has experience of witnessing that.
From the client side a rate rise could put someone's risk profile into the other side so cause a lender to retract an offer. All the other clients with the same offer could leap to accept and fill the allocation which could lead a lender to pull the offer and in theory the pre agreed buyer of the package on the other side could seek to alter the terms (size more likely than rate) and so push the lender into pulling some offers to fit. If it were a big and unexpected rate increase then you'd expect a lot of offers to be pulled for a lot of reasons including the bond buying backing out altogether and preferring to pay any penalties but a 25 bip rise that was generally expected and would have certainly been priced in on risk calcs on both sides doesn't seem likely to trigger much action?
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