Can my mortgage offer be withdrawn?
With the increase in interest rates and mortgage rates, a common question I’ve heard recently is can the bank withdraw a mortgage offer? The blog below will give you some helpful answers and if you have any questions about he current situation, feel free to get in touch.
Since the mini budget and the fall in the value of the pound, the mortgage market has faced some uncertainty. The Bank of England said it would “not hesitate” to raise interest rates in order to protect the pound and some mortgage lenders feel this could make offering new mortgage deals too expensive.
Can my mortgage offer be withdrawn?
Brokers agree that if you already have a mortgage offer agreed, then it should be honoured by your lender.
But it’s first time buyers and existing borrowers that are planning to remortgage that could face the most difficult time in the short term. The mortgage products and rates they were expecting to be offered have mostly been withdrawn and they are likely to be offered deals but at higher rates.
If you had a mortgage ‘Agreement in Principle’, this will rarely include a specific rate and you may find that not only is the rate higher but you can now borrow less than you originally thought. It isn’t until the mortgage application is complete that you are likely to have secured a specific rate and for a set term.
But it’s important to remember that if you are in the middle of your fixed rate mortgage deal, your rate cannot be changed until that deal expires.
If you have any questions about he current situation, feel free to get in touch. My mobile number is 07969 638349 or you can email duncan.kaye@keysandlee.co.uk