Can we change bank after signing Letter of Offer?

G

Gee

Guest
Hi there - just looking for advice

We are in the middle of buying a house. Contracts are signed and closing date is the middle of August. We went with First Active for our mortgage as at the time their rate was the best for us for a 5 year fixed. We signed our letter of offer and sent off all the documents.They rang us last Friday (after having all docs for almost 2 weeks) to tell us that we missed out on their old rate and that we would now be charged at their new rate and did we want them to proceed with drawdown. We told them to hold off for the time being until we decided. My question is - because we signed their letter of offer are we legally bound to continue with them? I know that at the moment we could get a better rate with AIB. I rang AIB today and they reckon they would have enough time before our closing date to issue a letter of offer and drawdown.
 
Not under any obligation at all even if you had signed and returned the offer. The mortgage with the lender doesn't start until the cheque has been drawn/cashed (depending on the lender in question). Just make sure to get moving quickly to avoid delays as the closing date is very near and delays can occur in even the most straightforward of applications.

It might also be worth asking First Active to match the rate you can get elsewhere. The worst that can happen is they say no.
 
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