When to negotiate rates?

[River]

Hi,

FTB and going for a 100% mortgage.

I have applied to a few banks and brokers and have received various offers.

I will be looking for mortgage provider to give me the booking deposit upon signing of contracts which i expect to do in the next few weeks.

However the apartments wont b ready until approx July at which time i will draw down mortgage.

As mentioned above i wil have to choose my lender in next few weeks to get money for booking deposit.

Is it possible to obtain a letter from the banks at this stage with details of the rate at which i will drawdown?

I have previously been told that you will not be able to get rate until you drawdown which seems fair enough with perhaps more looming interest rate rises.

if i cannot chose the rate at which i drawdown now, then this obviously leaves me in a very vulnerable position as the bank may quote me say rate
x% and then in 5 months time quote me rate x+.5%. presumably there is nothing much i can do at this stage as i have already borrowed the booking deposit by this time.


Has anyone any experience of this or know anyway to get bank to confirm what rate they will give me?


Any input or advice appreciated.

 

[Sarah W]

No lender will be able to guarantee a rate for you now for money that won't be drawndown for 3/4 months. Yes, they can give you an ECB + X rate but they cannot predict/influence what the ECB rate will be in July. Similarly if rates move up the cost of a fixed rate mortgage would increase and that increase would be passed on (as would any decrease). Your 'guarantee' if you like is that even if you accept a mortgage offer now you are not committed to close on that offer so if a better one comes along in the meantime you are free to switch - realistically no less than 6 weeks before closing to allow a new offer and the legal paperwork to be processed.

Sarah

www.rea.ie