Letter of Offer Interest Rate

[Celt07]

I've received a letter of offer/facility letter from Bank of Scotland quoting a fixed rate of 4.88%. They've stated on the letter that they reserve the right to change the rate if the offer is not accepted within 30 days. I've since signed to accept within that timeframe. However they have now increased the rate to 5.44%. I'm basically wondering what rate will apply to me? Will the orignally quoted rate still apply? Sorry if this is a stupid question but it really isn't clear from their letter.

 

[demoivre]

I've received a letter of offer/facility letter from Bank of Scotland quoting a fixed rate of 4.88%. They've stated on the letter that they reserve the right to change the rate if the offer is not accepted within 30 days. I've since signed to accept within that timeframe.

Then you should get the 4.88%.

However they have now increased the rate to 5.44%. I'm basically wondering what rate will apply to me? Will the orignally quoted rate still apply? Sorry if this is a stupid question but it really isn't clear from their letter.

Fixed rates change regularly. If you look at their website you'll see that the new fixed rates apply to applications after July 27th.

 

[sheena1]

You need to clarify if the initial rate applies if you accept the letter of offer before this date or if you also need to draw down the money before this date which is the most common condition. Why not give your bank a call to check?

 

[Celt07]

Thanks for the replies folks. I called the bank this morning and it appears it does all hinge on the drawdown date. If drawdown is before the 30 day period elapses then the offer rate will apply. If not, it will go to the higher rate.