Will my mortgage broker check I'm on the best rates up until exchange?

When buying a home, many buyers focus on negotiating the best purchase price but overlook the potential savings in their mortgage rate. One of the most effective ways to save money, sometimes thousands of pounds, is to ensure you have the best mortgage rate possible right up until the exchange of contracts. Even a small reduction in your mortgage interest rate can lead to significant savings over the life of the loan.

The impact of a small rate reduction

Mortgage rates fluctuate constantly, and lenders frequently update their offers. If you secure a mortgage rate early in the home-buying process but fail to check for better deals before exchange, you could miss out on savings. A mere 0.02% decrease in your mortgage interest rate can make a difference, especially on large loan amounts.

For every £100,000 borrowed, a reduction of 0.02% in the interest rate can lead to substantial savings. Let’s break it down:

• On a typical 25-year repayment mortgage, a 0.02% lower interest rate equates to approximately £120 in savings over the term of the loan per £100,000 borrowed.
• If you are borrowing £300,000, that translates to about £360 in savings.
• If you have a larger mortgage of £500,000, the savings can reach around £600.

While this may not seem like a huge amount, it’s important to remember that mortgage rates can change by much more than 0.02%, meaning the potential savings could be far greater.

Why check my mortgage rate during the sales process?

Before you exchange contracts, your mortgage offer is not legally binding. This means you still have the flexibility to switch to a better deal if you find one. Here are some key reasons to check your rate:

1. Market Fluctuations – Interest rates move regularly based on economic factors. What seemed like a good deal when you applied may no longer be the best option.
2. New Lender Offers – Lenders frequently introduce new mortgage products that might offer a lower rate or better terms.
3. Improved Credit Profile – If your financial situation has improved (e.g., a higher credit score or a lower debt-to-income ratio), you may qualify for a better rate.
4. Compounded Savings – Even a slight reduction in your interest rate results in lower monthly repayments, reducing your financial burden over time.

How to ensure I get the best rate

Consult a trusted mortgage broker – A broker can compare deals across multiple lenders and help you find the most competitive rate. It's worth knowing that not all brokers will look to see if that rate has improved throughout the process of the conveyancing running it's course so you'll need to ask the question to find out if your broker will do this for you.

With Mockford & Hunt, we work with two local trusted mortgage brokers that will ensure that they look out for your best interests by checking rates along the way, right up to exchange of contracts.

That way, you'll be able to secure the best rate at the time that your offer is agreed whilst tracking the mortgage market for better deals along the way so that you can ditch and switch if a better deal comes up.

Final Thoughts

A home is one of the biggest purchases you’ll make, and ensuring you secure the lowest possible mortgage rate is crucial. By working with a broker who will be checking for better mortgage deals right up to exchanging contracts, you could save hundreds or even thousands of pounds over the life of your loan.

If you're in the process of buying a home, feel free to talk to one of our brokers to ensure you get the best advice right up until exchange of contracts. Just contact us now to arrange free mortgage appointment. Tel 01233 367606 or email us at enquiries@mockfordandhunt.co.uk

* Please bare in mind that if you do change your mortgage product just before exchange, it may delay the timeline in which you will be in a position to exchange contracts so should you change product this late into the transaction, it may be worth discussing this first with your solicitor and estate agent involved in the purchase to ensure that any delay will not hinder your chance of securing the property.