Reply to: Mortgage Tracker based on BoS base Rate

[Peter Loew]

oh botheration (being polite) - its IF i'm waiting on. Got an agreement in principle from them at the start of the process but in the last three weeks its just dragged on with them asking for more and more information...usually the same information said in a different way.

That's exactly what happened with me. They kept requesting more and more info until finally after speaking to the head guy in the relevant IF dept., we decided moved on.

If you have found a property don't wait for IF, start shopping around for mortgage products elsewhere but do it now, IF may or may not come through.

What deal were they offering btw?

P

[Meerkat]

I was promised an offer by Intelligent Finance first time around, then nothing, broker said they were having funding problems.


P

oh botheration (being polite) - its IF i'm waiting on. Got an agreement in principle from them at the start of the process but in the last three weeks its just dragged on with them asking for more and more information...usually the same information said in a different way.

[Peter Loew]

Such permission should be virtually be automatic. Might be best to mention it to broker now and add it as a clause.

I re-mortgagued to extend. lender withheld 10k until work completed! So I increased offer by 10k - I never have drawn down the rest.....

Yes I have mentioned it to the broker and she's doing the digging for me. Interesting your lender held the 10k, must have been a major extension?

P

[Peter Loew]

Because you might cock it up, thereby making their (remember it's theirs until you pay for it) collateral worthless.

Yep completely understandable!

[BrilloPad]

Just hoping this thing is pushed through quickly.

Here's a question, in the conditions of the offer it says any work I intend to do with the property (major modifications etc.) requires permission from BoS. Well, I indend to build another bedroom on the roof terrace and for that I need PP, which after a few enquires I am confident I can get.

My question then is, why do I need permission from the lender and can they do anything to block me from extending my home, or perhaps present some extra costs?

P

Such permission should be virtually be automatic. Might be best to mention it to broker now and add it as a clause.

I re-mortgagued to extend. lender withheld 10k until work completed! So I increased offer by 10k - I never have drawn down the rest.....

[Moscow Mule]

why do I need permission from the lender and can they do anything to block me from extending my home, or perhaps present some extra costs?

P

Because you might cock it up, thereby making their (remember it's theirs until you pay for it) collateral worthless.

[Peter Loew]

I think they mean you have 12 months notice - they have none.

Just hoping this thing is pushed through quickly.

Here's a question, in the conditions of the offer it says any work I intend to do with the property (major modifications etc.) requires permission from BoS. Well, I indend to build another bedroom on the roof terrace and for that I need PP, which after a few enquires I am confident I can get.

My question then is, why do I need permission from the lender and can they do anything to block me from extending my home, or perhaps present some extra costs?

P

[BrilloPad]

I was promised an offer by Intelligent Finance first time around, then nothing, broker said they were having funding problems.

Thankfully I have this offer from BoS, however after reading that DT article, it seems they can withdraw offers any time they like, even though it says the offer is valid for 12 months!

P

I think they mean you have 12 months notice - they have none.

[Peter Loew]

People are still lending.....i hope so. at the moment going through major pain getting a new mortgage. its almost like they've all just shut up shop.

I was promised an offer by Intelligent Finance first time around, then nothing, broker said they were having funding problems.

Thankfully I have this offer from BoS, however after reading that DT article, it seems they can withdraw offers any time they like, even though it says the offer is valid for 12 months!

P

[Moscow Mule]

Yes, it tracks the BoS base rate (which is the same as BoE), hence my inquiry about BoS rates tracking BoE rates.
P

Ah ha.

[Peter Loew]

Doesn't it say in the offer what rate it will track? Last time I had a mortgage it said x% above published BoE base rate, or something similar.

Yes, it tracks the BoS base rate (which is the same as BoE), hence my inquiry about BoS rates tracking BoE rates.

P

[BrilloPad]

No, that mechanism doesn't exist yet. If the Scottish Nationalists get their way then the BoS is the most likely bank to be nationalised as their "central bank" since they already have the right to print their own money and the mechanisms to do so. It's only then that they would be able to separate from the BoE and decide their own rates (if the scots parliament allows them to).

You're right that BoS have to abide by the same rules as everybody else.

Interesting scenatio for discussion though! I cant see how you could have different rates for same currency. Presumably Scottish pound seperate from sterling?

And with lots of countries on same ccy/rates - nice to see GB going the other way.

I did read once that in 1980's recession they should have split Sterling into London Sterling and the rest sterling. Cos London was almost unaffected while rest of country ravaged.

[Meerkat]

Spoke to BoS and they basically said the same thing, if different then it will only be so for a few hours but usually no more than that.

Broker says that it's a way for BoS to term their mortgage product and that rates will defo track BoE rates as they have done retrospectively.

Thanks for the links Brillo, much useful. I reckon I'll accept this mortgage offer while people are still lending, will hopefully be safe for the next 2 years.

P

People are still lending.....i hope so. at the moment going through major pain getting a new mortgage. its almost like they've all just shut up shop.

[Moscow Mule]

Spoke to BoS and they basically said the same thing, if different then it will only be so for a few hours but usually no more than that.

Broker says that it's a way for BoS to term their mortgage product and that rates will defo track BoE rates as they have done retrospectively.

Thanks for the links Brillo, much useful. I reckon I'll accept this mortgage offer while people are still lending, will hopefully be safe for the next 2 years.

P

Doesn't it say in the offer what rate it will track? Last time I had a mortgage it said x% above published BoE base rate, or something similar.

[BrilloPad]

Spoke to BoS and they basically said the same thing, if different then it will only be so for a few hours but usually no more than that.

Broker says that it's a way for BoS to term their mortgage product and that rates will defo track BoE rates as they have done retrospectively.

Thanks for the links Brillo, much useful. I reckon I'll accept this mortgage offer while people are still lending, will hopefully be safe for the next 2 years.

P

Good idea - there is some stuff in the Telegraph today - Banks rush to withdraw mortgage deals -

http://www.telegraph.co.uk/news/main...ortgage117.xml