change of interest rate on mortgage during draw down?

[poppy1]

Hi All

Just some advice please. We applied for our mortgage months before our self build, just so we would be ready for when the time came. We were told we would get a discounted rate from july 06-july 07 (at the time we applied). But we did not draw down the mortgage until March 07 and only go the discounted rate until july 07 (5 months). is this fair? Should we have got it for 12 mths from march 07?
Should we go back to our broker? We were also paying life insurance from sept 06, but again did not get first drawdown until march 07. Thought the broker would sort it all for us (is that our responsiblity or theirs???)

Thanks

 

[mf1]

Its actually your own responsibility although it would have been good if the broker explained it all to you. If you check the terms of your letter of loan offer, its quite likely that it states the fixed period and its a matter of whether you should have looked for a new fixed rate at the time of drawdown March 07. Although, its more than likely that the one year fixed rate at that time would have been higher.

You need life cover in place before you can draw down the mortgage so if you knew you would not need the money until March 07 its questionable as to whether you needed life cover in place earlier. Its all a bit swings and roundabouts though.


mf