Cooling off period??

[jon_r]

Hello,

I switched to a new 5 yr deal amidst the panic 2 weeks ago. That evening my bank, NatWest, duly put all the rates up significantly…so it felt like a good move…our current fixed rate doesn’t end until March, so I wanted to make sure we didn’t lose the deals on offer with our existing lender, which beat all the rest. 
 

however, as my current mortgage doesn’t end until March do I still have the right to switch again if interest rates change or other deals become available? Or Am I completely locked in already? 
 

thanks for your help.

[Lilla D]

Hi Jon,

On 10/18/2022 at 9:02 PM, jon_r said:

I switched to a new 5 yr deal amidst the panic 2 weeks ago

Based on the rest of your message, the above sentence doesn't quite sound right. Did you mean that you applied for or received a mortgage offer for a 5yr fix from a new lender 2 weeks ago?

Either way, if the application stipulated that you didn't want to start the new rate until the current one ended in Mar23, then you are not locked into this new 5yr deal. 

Even if you receive a mortgage offer, you are not obliged to take the mortgage deal. If you change your mind, you will just have to inform the solicitor acting for this remortgage, that you didn't wish to proceed. This would be prudent to do as soon as possible, but latest 2 weeks before completion is due, so the solicitor doesn't do the necessary preparations for completion only to be told that they wasted their time.

You could apply for a new deal from your current lender (Natwest) or from another lender. You will just have to make sure that if you made a number of applications, the ones you don't want are aware of it, so they can close the case and don't attempt to complete the remortgage.

Just to say, even if it sounds tempting to make a number of applications, once you make the 3rd one and any afterwards, you'll become suspicious as to why you make so many applications, so be mindful of this aspect.