Once your mortgage application has been fully approved and you have been issued a mortgage offer, you will usually be given a limited time in which to complete your property purchase.
But what happens if you don’t complete your purchase before your mortgage offer expires? This is a question that we get asked a lot. This guide will explain the consequences of your mortgage offer expiring and the options available to you.
While most mortgage offers are typically valid for a period of six months, some lenders may offer shorter or longer periods. It’s important to check the details of your specific mortgage offer to confirm the exact timeframe.
While it’s important to try to complete the house-buying process before your mortgage offer expires, unexpected delays can occur. If you’re unable to complete the purchase before the offer period ends, it’s not necessarily the end of the road. You may be able to reapply for a new mortgage offer or request an extension on your existing offer.
However, it’s important to keep in mind that this is not always possible and may depend on a number of factors, including the lender’s policies and your financial circumstances. If you’re having difficulty meeting the deadline, you should speak to your lender as soon as possible to discuss your options and avoid any unnecessary delays or complications.
Why could a mortgage offer expire before completion?
There are a variety of reasons why a mortgage offer may expire before the completion date. Some common reasons include:
- Delays in the conveyancing process: If there are issues with the legal work involved in the property purchase, such as delays in searches or documentation, this can cause delays that push beyond the mortgage offer period.
- Valuation issues: If the property valuation comes in lower than expected or there are issues with the condition of the property, this can affect the lender’s decision to provide a mortgage offer.
- Changes in personal circumstances: If your financial circumstances change during the mortgage offer period, such as losing your job or taking on additional debt, this may impact your ability to secure a mortgage offer.
- Issues with the property chain: If there are complications with the chain of buyers and sellers involved in the property purchase, this can cause delays that extend beyond the mortgage offer period.
Delays in new build property
There are several potential reasons why there may be delays when buying a new build property.
Some common reasons include:
- Construction delays: If there are delays in the construction of the property, this can affect the completion date and push back the mortgage offer period.
- Legal issues: There may be legal issues related to the purchase of a new build property, such as obtaining planning permission or complying with building regulations. These issues can cause delays in the conveyancing process and push back the completion date.
- Snagging issues: New build properties may have defects or “snagging” issues that need to be resolved before the completion date. This can cause delays if the issues are not resolved in a timely manner.
- Developer issues: If there are issues with the developer, such as bankruptcy or financial problems, this can impact the construction or completion of the property.
Can I extend my mortgage offer?
Many lenders will consider extending a mortgage offer, however, it’s important to keep in mind that extensions are not always granted, and the lender may require additional information or documentation to support your request.
How do I get an extension on a mortgage offer?
To get a mortgage offer extension, you should contact your lender as soon as possible and explain the reasons why you need an extension.
You will likely need to provide additional documentation or information to support your request, such as an update on the progress of the property purchase, a timeline for completion, and any relevant details about the cause of the delay.
The lender will review your request and determine whether an extension is possible based on their own policies and procedures.
They may also require a new property valuation or additional credit checks to ensure that your financial circumstances have not changed since the original mortgage offer.
How long can I extend the mortgage offer?
The length of time that you can extend your mortgage offer will depend on the policies and procedures of your lender.
Some lenders may be willing to extend the offer for a few weeks or months, while others may allow for longer extensions of several months or more.
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What can you do if your mortgage offer extension is refused?
If your request for a mortgage offer extension is refused by your lender, there are several options you can consider:
- Reapply for a new mortgage offer: If your current offer has expired, you may need to reapply for a new mortgage offer. This may involve a new application process and additional fees, so it’s important to consider all options before proceeding.
- Look for a new lender: If your current lender is unable to grant an extension or provide a new mortgage offer, you may want to consider looking for a new lender. Make sure you compare rates and terms from multiple lenders to find the best option for your needs.
- Negotiate with the seller: If the delay in completing your property purchase is due to issues with the seller, you may be able to negotiate a new completion date or ask for compensation to cover any additional costs or fees associated with the delay.
How can I reduce the risk of my mortgage offer expiring?
There are several steps you can take to reduce the risk of your mortgage offer expiring before completion:
- Act quickly: Once you receive a mortgage offer, make sure to act quickly to complete the purchase. Work closely with your solicitor, mortgage advisor, and any other parties involved in the purchase to keep the process moving forward.
- Keep your lender informed: If there are any delays or issues that could affect the completion date, make sure to keep your lender informed. They may be able to offer guidance or support to help keep the process on track.
- Choose a realistic completion date: When agreeing on a completion date with the seller, make sure to choose a date that is realistic and achievable. Consider any potential delays or issues that could arise and build in some extra time to allow for unexpected setbacks.
- Be prepared for additional checks or documentation: Your lender may need to perform additional checks or request additional documentation as part of the mortgage application process. Make sure to provide any requested information as quickly as possible to avoid delays.
Make sure you have a mortgage offer tailored to new build properties
When purchasing a property, it’s important to consider the potential for delays in the construction process and make sure your mortgage offer is long enough to accommodate any potential setbacks.
Some lenders may be more flexible in offering longer mortgage offer periods for new build properties, while others may have stricter guidelines. Working with a mortgage broker like Strive can help you find a lender that is better suited to your needs and circumstances and ensure that you have the right mortgage offer in place to complete your purchase.
Work with a mortgage broker
Working with a mortgage broker can be a good way to reduce the risk of your mortgage offer expiring.
A broker can help you find a lender that is best suited to your needs and circumstances, and can offer guidance and support throughout the mortgage application process.
They can also help you understand the terms and conditions of your mortgage offer, and can help you navigate any potential issues or delays that may arise during the property purchase process.
Will I be accepted for a new mortgage?
Your last mortgage application will be noted on your credit report, and if your mortgage offer has expired, a new lender may question why your previous application didn’t go through.
However, it’s important to remember that most mortgage lenders understand that delays and unforeseen circumstances can happen during the property purchase process.
As long as you meet the particular lender criteria and can demonstrate that you have taken steps to address any issues that may have caused the delay, you should still be able to obtain a mortgage offer.
It’s also worth noting that having multiple credit checks within a short period of time can potentially have a negative impact on your credit score.
However, if you work with a mortgage broker, they can help you identify lenders that are most likely to approve your application based on your circumstances.
What documents will I need for a new mortgage application?
The documents & information you will need to supply when re-submitting a new application will be similar to those on the first application but more recent, you’ll likely need the most recent 3 months’ payslips and bank statements.
When applying for a mortgage, you will typically need to provide the following documents:
- Proof of identity: You will need to provide at least two forms of identification, such as a passport, driver’s license or birth certificate.
- Proof of income: You will need to provide evidence of your income, such as payslips, tax returns, or bank statements. If you are self-employed, you may need to provide additional documents, such as audited accounts or an SA302 tax calculation form.
- Proof of address: You will need to provide proof of your current address, such as a recent utility bill or council tax bill.
- Bank statements: You will need to provide recent bank statements for all of your accounts, including savings accounts and credit cards.
- Employment details: You will need to provide details of your current employment, including your employer’s name and contact details.
- Details of your property purchase: You will need to provide details of the property you are planning to purchase, including the purchase price and details of the deposit you have saved.
- Other financial commitments: You may need to provide details of any other financial commitments you have, such as personal loans or credit card balances.
My mortgage offer expired, can Strive Mortgages help me?
In short, yes!
It’s always beneficial to have an experienced independent mortgage broker on your side, especially if you have experienced issues with your mortgage offer expiring in the past.
We can help you find a more suitable lender and mortgage product, which may have a longer mortgage offer period or better terms and conditions. We will also guide you through the application process, help you prepare the necessary documents, and communicate with all the relevant parties to ensure a smooth and timely completion.
Ultimately, using Strive Mortgages can save you time, money, and stress and increase your chances of securing the right mortgage for your needs. Get in touch with us today!