What To Do If Your Mortgage Deal Is Withdrawn
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Homeowners, particularly those faced with remortgaging soon, might be feeling alarmed by the recent stream of mortgage offers being pulled from the market. In response to April’s and again more recently June’s less than expected drop in inflation, we’ve witnessed lenders suddenly pulling various deals one after the other like dominoes.
“Making top story headline news, many homeowners will find themselves worrying about the increasingly limited availability of products on the mortgage market, and what to do if their mortgage offer disappears. Whilst you may feel vulnerable and powerless, there are some things that everyone on the hunt for a mortgage deal should do to make them better equipped in the uncertain climate.”
1. Don’t panic
Whether you’re a first-time buyer or remortgaging, the mortgage market can be daunting. With the recent disappearance of mortgage products making homeowners and first-time buyers feel anxious, it’s important not to panic. Instead, at the beginning of your mortgage journey, make sure to set time aside to thoroughly research the products still available, and which of these meet your needs and criteria. If you’re midway through the application process, regardless of the changes a lender may make, it’s likely they’ll honour the interest rate you’ve agreed to for six months.
2. Speak to a mortgage adviser
An adviser can help you to navigate the mortgage market, supporting you throughout the process right up until you seal the deal. Finding the right mortgage offer for you can be both confusing and overwhelming, particularly with all the different terms and jargon. Knowing the industry inside out, a mortgage adviser’s job is to use their knowledge to help you find and secure a deal that suits your circumstances. Whilst we’re seeing deals being pulled, there are still plenty available. What’s more, mortgage advisers often have exclusive access to additional deals.
3. Get ready early
There are many steps with the mortgage application process, and it’s easy to feel bogged down in paperwork. Although this might seem boring, it’s crucial to have everything ready to go, along with a clear understanding at all times of where you stand within the process. A mortgage rate is considered ‘locked in’ once an offer has been made by the lender, and that ‘Decision in Principle’ can last up to six months. However, if you’re still sifting through the paperwork and are yet to submit your mortgage application, the sudden removal of your deal by the lender is a possibility.
4. Shop around for the right deal
Although we’re seeing some products being pulled from the market, there are others available. With higher interest rates, it’s important that first-time buyers and current homeowners who are looking to remortgage shop around. A mortgage adviser can help you find the most suitable deal for your circumstances and factor in true costs. It’s also important to not only think about headline rates, but also assess any additional fees that may be involved. Our online mortgage finder can also help you to quickly and easily find available deals, filtering offers based on your circumstances (for example, the value of your property).
5. Remember there’s always a plan B
If you find yourself in the stressful situation whereby your mortgage product has been withdrawn, or is about to be, it’s time to take a step back and review your options. In some cases, mortgage advisers will be notified a few hours before a deal is pulled off the market, giving you a small window of opportunity to get your application over the finish line. Whilst this isn’t always the case nor possible, it’s worth checking. If the worst-case scenario comes into effect and your offer is pulled, they can advise you on your next steps and options.