Re-mortgage now or wait?
Discussion
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?
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?
princeperch said:
When a mortgage product is offered , my understanding is that the rate offered is based on a fixed tranche of funding that that lender has and is then earmarked for that product for a specific period of time.
I've never heard of a mortgage offer being withdrawn because there has been a spike in the swap rates or the market has moved - all the fundamentals are in place at the time the mortgage is offered to fund that offer. The fact the market might have moved and future mortgages are going to be funded from a different tranche of funding makes no difference to historic offers which might have been at a lower rate.
That's my understanding anyway. I'd have been totally snookered a year ago if Santander had done a u turn on my 0.99pc 5 year deal which was offered in October 2021 and completed at march end 2022 (1 day before it expired and would have been repriced at that point).
That would be my general understanding. The 'bond' comes first, or the agreement on terms, and the issuer then goes to the retail market to fill it. I've never heard of a mortgage offer being withdrawn because there has been a spike in the swap rates or the market has moved - all the fundamentals are in place at the time the mortgage is offered to fund that offer. The fact the market might have moved and future mortgages are going to be funded from a different tranche of funding makes no difference to historic offers which might have been at a lower rate.
That's my understanding anyway. I'd have been totally snookered a year ago if Santander had done a u turn on my 0.99pc 5 year deal which was offered in October 2021 and completed at march end 2022 (1 day before it expired and would have been repriced at that point).
However, one would assume they make more offers than the total value of the bond as you'd think a percentage of offers are declined/not accepted? Of the case then if more accept than expected some could get rejected?
princeperch said:
When a mortgage product is offered , my understanding is that the rate offered is based on a fixed tranche of funding that that lender has and is then earmarked for that product for a specific period of time.
I've never heard of a mortgage offer being withdrawn because there has been a spike in the swap rates or the market has moved - all the fundamentals are in place at the time the mortgage is offered to fund that offer. The fact the market might have moved and future mortgages are going to be funded from a different tranche of funding makes no difference to historic offers which might have been at a lower rate.
That's my understanding anyway. I'd have been totally snookered a year ago if Santander had done a u turn on my 0.99pc 5 year deal which was offered in October 2021 and completed at march end 2022 (1 day before it expired and would have been repriced at that point).
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......I've never heard of a mortgage offer being withdrawn because there has been a spike in the swap rates or the market has moved - all the fundamentals are in place at the time the mortgage is offered to fund that offer. The fact the market might have moved and future mortgages are going to be funded from a different tranche of funding makes no difference to historic offers which might have been at a lower rate.
That's my understanding anyway. I'd have been totally snookered a year ago if Santander had done a u turn on my 0.99pc 5 year deal which was offered in October 2021 and completed at march end 2022 (1 day before it expired and would have been repriced at that point).
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.......
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?
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