Mortgage rates being held if you change to another property

[Bodybop]

Hello

I am confused. We fixed a mortgage rate. “Locked it in’ or something. Halifax said it was locked until Dec. The people we were buying from no longer want to move so we have looked elsewhere. Halifax say they will not honour the rate of the mortgage offer.

I am confused because decades ago when I last searched for a home, the rate was ‘saved’ when I did the mortgage in principle and I had time to find a home. Has it changed now, rates aren’t rates for 3 - 6 months?

I guess it must depend on that particular mortgage product. I know on ours with Principality they have stated that the mortgage they have offered us is transferable to another property

Do you mean porting? Or when you were buying a new house with a new mortgage. Want to keep my 4.1 not move to 6.5!

They'll only let you keep it with a move if they allow porting

Sorry please ignore my comment just re read

Halifax are one of a few lenders who will insist that if you change the property partway through the application process, you will need to pick a new rate from the list of ones that are currently available - even if you've already had a mortgage offer issued.

Mortgage man did not tell us that it could not be changed and I’ve checked what he has sent through - can’t see it in the documents.

Any idea which other companies allow this as if we are gonna get shafted I’d rather go to a lender that allows an address change,

Will complain but what good will that do anyway

Crappy time to buy a house

Nationwide didn't let us take our rate when we changed the property we were purchasing.

You'll need to ask your adviser whether other lenders are offering competitive deals at today's rates - if you applied to Halifax a couple of months ago on the original property, I'm afraid you aren't going to get a rate that's comparable with the one on your mortgage offer from any other lender as rates have increased right across the board since then.

No not porting, purchase of a new property.

Hi OP - we have our mortgage offer with NatWest who have allowed us to change address. We applied for the mortgage in May to buy a new house. We’ve since pulled out of that house (schools / nurseries in the area were a joke combined with a bad survey result) and we can keep the mortgage offer as long as it’s used by November. It’s 4.1% and fixed for 5 years, just means if we don’t complete until November then we’ll only have the mortgage fixed for 4.5 years if you get me. Good luck! Not a great time for us to be buying is it 😬

Hello @Smsquared

our mortgage guy hasn’t given us a straight answer yet. I don’t get this bit

‘’fixed for 5 years, just means if we don’t complete until November then we’ll only have the mortgage fixed for 4.5 years if you get me. ‘’

So we have a fixed rate for 5 years from May 2023 and that rate is valid for 6 months until November 2023. If we went with the original property we found and completed in august we would only be 3 months in to the 5 year period, whereas if we wait until November 2023 (which is more likely having only just had an offer accepted on somewhere) then we’ll be 6 months into the 5 year period and only have 4.5 years on that fixed rate. Not that this helps you much as I think current interest rates are unavoidable 😳

I though the rate only started when you complete?

But because we are changing properties since receiving the mortgage offer this is the penalty

Oooh I see

Well as expected Halifax are sticking firm and lost a customer. I suppose now the trend is meant to be house prices drop to allow for those of us who can't afford purchases at the new rates! Haven't seen that much yet in our area