Help - first time buyer - applied for mortgage - interest rates??

[Jaggerdagger]

Hi there, first time buyer here. Had my offer accepted on a property and applied for a mortgage through a broker 2 weeks ago (Nationwide is the proposed lender). I've just heard about the rise in interest rates today. What I want to know is whether this will affect my mortgage application, or whether the agreed interest rate on the 5 year fixed rate mortgage I applied for will be honoured?

Sorry if it's a stupid question, I'm just new to all of this, and the uncertainty of not knowing whether the mortgage is accepted or not has caused my mind to go into overdrive!

Any advice gratefully received.

If the application is already in then your rate will be locked in and you'll usually have around 6 months to finalise the sale before the offer expires. We've also just applied to nationwide! Good luck 😊

@mutinyonthebunty Thanks so much for putting my mind at rest. Good luck with yours too! 🍀

Just echoing pp you'll have your offer valid for 6 months

If the offer is approved it will remain valid at the agreed rate. If it’s in the application process but you paid a fee on the agreed rate then it will be honoured if the application is successful. If you’re in the application process but haven’t paid an up front fee to secure the rate then there’s a chance they may pull the rate based on the increase yesterday and offer a different product. It’s worth talking to them if your rate wasn’t agreed. Good luck and hope you get the lowest rate!

Have they made you an offer OP? Once an offer letter goes out that rate will be honoured. If you had just applied but offer not made unless you paid to secure rate I think it is discretionary.

Thanks everyone. I've applied for the mortgage 2 weeks ago and waiting to hear back, but haven't paid a fee as far as I'm aware. Fingers crossed it comes back OK!

If you’ve received the offer letter your rate will be locked, but if they’re still processing your application I’d be prepared for them to revise the interest rate accordingly. At least this was what happened to us when we bought 2 years ago (mortgage was with Santander).

Thanks @PointyMcguire did it affect your repayments too much? I'm just so anxious about it all!

@Jaggerdagger I can’t remember the specifics now but I don’t think it was a huge amount. I remember being slightly irked that we could have paid less had we managed to lock the better rate, but in the grand scheme of house buying it wasn’t the end of the world. Can you perhaps speak to your broker so you have an idea of how much it might increase by?